According to Liases Foras, during the March quarter, new launches in affordable segment has kept residential market prices in check. However, the inventory level remains unchanged at 39 months
Residential market in six major cities witnessed marginal growth in sales as well as in inventory. While the average prices in these six cities remained stable in March 2015 quarter compared with previous quarter, Mumbai Metropolitan Region (MMR) saw price decline mainly due to new launches in affordable segment, says non-brokerage real estate research firm Liases Foras.
According to the latest quarterly report by Liases Foras, overall sales across Bengaluru, Chennai, Hyderabad, Pune, MMR and National Capital Region (NCR) inched by 2%. Sales in Bangalore and MMR surge by 31% and 25% respectively, while NCR and Hyderabad witnessed decline in sales by 27% and 16%, respectively from previous quarter.
During the March 2015 quarter, new supply increased by 21% from previous quarter with 36% of the new supply coming in the cost range of Rs50 lakh to Rs1 crore, followed by the cost range of Rs25 lakh to Rs50 lakh at 29%, Liases Foras said.
According to the report, 2BHK constitute 36% of new supply followed by 3BHK with 35%. MRR’s average price of new supply is lower by 31% compare to existing supply. Chennai, Bangalore, Pune and NCR show decrease in new launch prices compare to existing supply prices by 16%, 10%, 6% and 4% respectively, while Hyderabad shows increase in new launch prices by 4% compare to existing supply. Bangalore and MMR constitute 31% and 28% of new supply, respectively.
Liases Foras said, MMR witnessed historic new launches with 18.16 million sq ft of new launches during this quarter. This was the second highest new lunches in a quarter in MMR. The highest new launches so far were during Q1 FY 10-11.
Talking about inventory level, the report says the level in these six major cities increased by 2.48% to 6.88 lakh units admeasuring 919 million sq fts. Chennai, NCR and Pune show quantum of sales is higher than new supply while Bangalore and MMR shows sales is lower than new supply during last quarter.
At India level, month inventory remained un-changed at 39 months from last quarter. NCR showed the worst months inventory at 71 months, while Pune market represents the least months inventory 18 month. MMR market stands at 46 months of Inventory. In ideal condition, a market should maintain 8-12 months of inventory, the report says.
The average price of six cities remained stable from previous quarter. MMR witnessed the maximum fall of 2.18% in weighted average prices compare to other cities, this is primarily due to new lunches in affordable segment. Pune shows slight increase in prices by 1.38% from previous quarter, Liases Foras added.