A pedestrian walks in front of residential apartment buildings in Palava City on the outskirts of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Mumbai Home Sales Jump, Boosted by Affordable Low-Budget Units

(Bloomberg) -- Home sales rose 9 percent across India’s seven biggest cities in the third quarter, boosted by low-budget apartments, according to Anarock Property Consultants Pvt.

The highest sales were recorded in Mumbai and neighboring Pune, which accounted for about 27 percent of purchases across the seven cities, real estate broker Anarock said in a report. The National Capital Region, which covers Delhi and surrounding areas, and Hyderabad both posted the lowest growth, with a 2 percent increase from the previous quarter, the data showed.

The third quarter of the year is usually a slow period for the housing market because of the 15-day “shraddh” period, when people honor their dead ancestors and which is considered inauspicious for buying property. Developers typically hold off marketing new projects until the Hindu festival season which starts in October.

City

Q3 Sales

Q2 Sales

Change

Mumbai18,20015,75016%
NCR11,35011,1502%
Bengaluru16,25014,80010%
Pune9,3008,37511%
Hyderabad4,8504,7502%
Chennai2,9252,7008%
Kolkata4,3004,0257%

Source: Anarock Research

Housing supply rose just 3 percent last quarter from the previous three months, the data showed. This was largely dominated by low-budget housing, with homes costing less than 4 million rupees ($54,000) accounting for about 42 percent of total new supply. Homes costing between 4 million rupees and 8 million rupees made up 33 percent, with the balance coming from luxury and ultra-luxury developments.

©2018 Bloomberg L.P.