Housing sales rallied 57%, pricing rises 4%: IIFl Home Loans Report
IIFL Home Loans, a leading housing finance company in association with Liases Foras, in its report analyses the movement of real estate inventories and their prices over the last one year in the real estate market of 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. ”
The last year has also witnessed good inventory supply. This is because many stalled projects got completed due to an 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.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
