The residential real-estate sector in India continues to
witness a lull despite discounts and schemes offered by builders.
Sales in Mumbai Metropolitan Region (MMR) grew a mere 1% to
10.45 million square feet in January-March quarter from 10.3 msf in the
preceding quarter, while they decreased in Hyderabad and Pune, based on Liases
Foras Real Estate Rating & Research.Only National Capital Region (NCR) and
Chennai markets saw 24% and 36% rise in sales, respectively.
Pankaj Kapoor, managing director, Liases Foras , said ,
“Residential sales in Bangalore and Pune decrease by 16% and 7%, respectively,
while Hyderabad introduced a gloomy picture with sales plunging 46% eventually.”
Residential values rose across cities, with the top increase
seen in Bangalore at 6% to Rs 5, 004 in Q4 over the preceding quarter.The
Mumbai market saw price gain of 3%. Pune and Bangalore markets suffered mainly
due to escalation in selling prices.
The sluggish IT industry in these markets indicated the
private equity investments, cash-out deals and higher land valuations were the
major reasons for price rise. On the whole, the cost of new supply was less
than that of existing supply. While the Mumbai market saw maximum number of
launches, NCR, Pune, Hyderabad and Bangalore showed significant shrinkage in
their figures.
“Maximum new supply in MMR is in the cost range of Rs one to
two core and it is reasonable housing that led the pack in NCR. Other markets
saw a mix of budget and reliable housing in terms of new supply,” Kapoor said.
“With unabated price rises and limited launches this quarter,
it remains to be seen whether the money strapped builders are successful in
selling out their current unsold stock with the prevalent schemes and waivers. The
lowering of interest rates would also prove to be a boon in the long run,” said
Kapoor.
While inventories reduced in Chennai and NCR markets,
Hyderabad painted a dismal picture with inventories at 49 months in comparison
with 23 in the previous quarter.
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