According to report from Bank of India Merrill Lynch report, House prices in Mumbai are headed for a sharp correction, while others may remain stagnant due to rising unsold stock
Merrill Lynch analysts Mr. Abhishek Kiran Gupta and Gagan Agarwal said, “Mumbai island city continued to maintain its quarterly average of 2,000 units sales However, we believe the city will struggle to maintain similar run-rate from first quarter of calender year 2012, if prices do not drop by then”
The Highlights of Bank of India Merrill Lynch..!
* Mumbai saw 1,700 units sold in third quarter of 2011 as against the total launch of 3,000 units during the quarter.
* The unsold inventory in the megalopolis is the highest in the last 9 quarters and will take at least 13 quarters to exhaust, says the report.
* The developers give 5-10% discount on a select basis and are offering privileges such as free parking and furnished kitchen for over a quarter.
* As for Noida in the National Capital Region, “waterfall drop” in the absorption rates, which have fallen by half in the city mainly due to agitation with land acquisition. The number of quarters needed to exhaust unsold stock has gone up from four quarters in the second quarter to five quarters in third quarter.
* The absorption rate in Bangalore has fallen from 11% in the 3rd quarter of calendar year 2011 from 13% in second quarter as the info tech hub is witnessing a steady supply of residential units.
* The unsold inventory in Bangalore rose from 27,000 flats in the second quarter to 31,000 flats in the third quarter of 2011. The city requires 8 quarters to exhaust the unsold stock.
* Bangalore developers do not have pricing power.The projects launched in the third quarter of 2010 have seen a price of less than 10% in the past one year. Also, the projects launched in the current year have seen no price hikes.
* Gurgaon, also in NCR, where absorption has remained stable at 5,000 flats as compared to previous quarter. In Gurgaon, prices have risen 30% since the bottom in 2009.
No comments:
Post a Comment