Sharing some good links on the real estate scene from Firstbiz
In this post, Sunainaa Chadha says:
Sales across top six cities in India saw a quarter-on-quarter drop of 25% in the September quarter, the lowest sales since 2009 while unsold inventory rose to a high of 815,000 apartments as investors are slowly deserting the property market as prices have peaked.
This is the highest ever unsold stock implying that the ready but vacant flats will take at least four years to sell, which means home prices have not only peaked in India's financial hub, Mumbai, but in other parts of the country too. The report covered six cities—Mumbai Metropolitan Region (MMR), the National Capital Region (NCR), Bangalore, Hyderabad, Chennai and Pune, which contribute round 70% of the total apartments built in India.
While sales in the national capital region (NCR) have dipped 34 percent to 11.51 million sq feet quarter on quarter, sales in Mumbai were down 9% to 10.22 million sq ft from the last quarter. But get this: the productive markets of Bengaluru and Chennai have been hit the most, with sales dipping by 43% and 46%, respectively, from the previous quarter. The average price increase in the six centres was just 1%.
In Greater Mumbai for instance, weighted average cost of a house has soared to an all-time high of Rs 3 crore (from Rs 2.8 crore last year) even as the unsold inventory pile-up has shot up to 53,856 units. The number of apartments that came into the market this quarter (3,589) is also 53% more that the previous quarter but sales have dipped 6 percent in the same period. According to Pankaj Kapoor, MD at Laises Foras, it will take 65 months ( a little over 5 years) to sell these apartments!
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| From Firstbiz
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