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Housing Sales Rallied 57% but Pricing Rise Mere 4%: IIFL Home Loans Report
14 Dec , 2016
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07th November, New Delhi: IIFL Home Loans, a leading housing finance company in association with Liases Foras, a realty research company recently unveiled a report on “Price Dynamics and Inventory Supply” This report analyses the movement of real estate inventories and their prices over the last one year in the real estate market of Delhi. This study has been conducted to find out – is this the right time for the home buyers to invest in real estate?

Interestingly, the data gives a ray of hope in an era of despair, to many home buyers who are looking for a new home.

Quarter Opening (A) New Supply (B) Sold (C) Closing (D)
1st, 2015-16 46209 3778 1964 48023
2nd, 2015-16 48023 1685 1689 48019
3rd, 2015-16 48019 960 2579 46400
4th, 2015-16 46400 1834 2404 45830
1st, 2016-17 45830 2700 3095 45435

 

As evident from the above data, sales have increased highly from Quarter 1, 2015-16 to Quarter 1, 2016-17. Over the last 1 year, inventories sales have increased almost 57.5% but the pricing tells a different story altogether.

Quarter Pricing (Sq/ft)
1st, 2015-16 2728
2nd, 2015-16 2705
3rd, 2015-16 2779
4th, 2015-16 2812
1st, 2016-17 2842

 

The table above shows there is a slight variation in the average sale price of inventories. The price has gone up just 4% in last one year. The inventory movement is not proportional to movement in housing prices. A top official of IIFL Home Loans says, “There is a direct relationship between sales and price. But here in real estate, sales have increased without much variation in prices. That means housing price correction is yet to be done in real estate market. So this is the best time for the home buyers to buy a new home. ”

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The last year has also witnessed good inventory supply. This is because many stalled projects got completed due to implementation of the Real Estate (Regulation & Development) Bill, 2016. The positive initiatives undertaken by the government such as Benami Transactions Bill, S.E.B.I’s relaxation norms for Real Estate Investment Trusts (REITS) have ushered a positive sentiment in the realty market.

 

About IIFL Home Loans:

India Infoline Housing Finance (IIFL Home Loans) is a housing finance company. It is a 100% subsidiary of India Infoline Finance Limited (IIFL). Engaged in the activity of mortgage financing, the company finance the housing requirements of people every nook and corner of the country. With 55+ branches across India and 2000+ pre approved pan India projects, the company validates the trust that industry has reposed in the company.

 


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