Price acceleration was persistent across the markets, with the highest rise being in Bengaluru, says Liases Foras’ quarterly report on the realty sector
The residential realty sector in India is going through a phase of lull, according to Liases Foras’ quarterly report on the sector. In terms of sales both in units and value, only the National Capital Region (NCR) market received a boost in the fourth quarter of the fiscal 2012-13, followed by Chennai, while the others recorded a decline. The Mumbai Metropolitan Region (MMR) market showed stagnancy.
On a sequential basis, the NCR and Chennai markets logged in 24% and 36% surge in sales, while others such as Bengaluru and Pune showed decline. Hyderabad presented a gloomy picture with a 46% q-o-q plunge in sales.
While analyzing the cost range distribution, maximum sales figures in all the cities were skewed towards inventory in Rs25 lakh to Rs50 crore and Rs50 lakh to Rs1 crore. However, only in MMR, the sales saw equitable distribution across cost ranges above Rs25 lakh.
Price acceleration was persistent across the markets, with the highest rise being in Bengaluru.
The 1% decline in MMR in the previous quarter, hinting towards further correction, could not be sustained and the prices recorded a 3% q-o-q rise again.
In terms, of efficiency, again Chennai and NCR showed a decline in the months inventory.
Hyderabad once again indicated a dismal picture with its inventory standing at 49 months compared to 23 in the previous quarter. MMR was stagnant while situation in Bengaluru and Pune are dicey with a rise in months inventory.
On the whole, the price of new supply was lower than that of existing supply. MMR ruled the roost in terms of number of new launches while NCR, Pune, Hyderabad and Bengaluru have shown significant shrinkage in new launches.
It is interesting to note that the maximum new supply in MMR is in the cost range of Rs1 crore-Rs2 crore, while in NCR, it is the affordable housing that led the pack. Rest other markets saw a mix of budget and affordable housing in terms of new supply.
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