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Housing sales rallied 57%, pricing rises 4%: IIFl Home Loans Report

Housing sales rallied 57%, pricing rises 4%: IIFl Home Loans Report

IIFL Home Loans, a leading housing finance company in association with Liases Foras, a realty research company recently unveiled a report on strongPrice 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, here 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 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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