According to a SBI Cap Securities new report, at a time when house sales are falling across major Indian metros, Bangalore is still seeing a steady absorption of residential units.
The city is seeing 60 lakh sq.uare ft of residential flats being bought by buyers every month for the last year.
Major IT firms like Infosys, Wipro, TCS are hiring 10,000 to 15,000 staff, giving boost to new house purchases.
Mr. Akshit Shah, Real estate analyst , SBI Cap Securities said, "Normally, IT (Information Technology ) companies give salary rises and bonuses during the March-April quarter, and employees start planning their purchases, notes .Besides this, the festive demand has also helped the house sales."
Highlights of SBI Cap Securities Report..!
# While absorption is steady, the number of new launches in the Bangalore City, has come down sharply from monthly average of 70 lakh sq. ft to 40 lakh sq. ft a month now. This has helped it to keep inventory levels under check.
# Absorptions have been steadily declining at the NCR (National Capital Region) and Mumbai, the India’s largest realty markets.
# The absorption of houses has come down from 1.5 crore sq ft to 2 crore sq ft a month to 1 crore sq ft now in the NCR, while the Mumbai is seeing absorption of 60 lakh sq. ft. It is a two yeas low.
# NCR has a inventory level of 13.20 crore sq. ft. This is higher than other cities, but it has come down from a peak of 15 Crore sq. ft in 2010, courtesy lower pace of newer launches. Inventory in months of sales at 12 is higher than 2 years average of 9.
# Due to lower absorption, the inventory levels in Mumbai have touched 9.9 crore sq. ft and in terms of inventory in months of sales stands at 16 months, compared to 8 months in 2010. This is one of the highest levels in India.
# In case the approval process in Mumbai fastens.There will be a sudden rise in the inventory, which will push the developers to reduce the property prices. The saviour is considerable improvement in absorption, which seems unlikely at the current property price levels.
About SBI Cap Securities..!
SSL (SBICAP Securities Ltd) is a 100% subsidiary of SBI Capital Markets Ltd which is one of the oldest players in the Indian Capital Market and has a dominant position in the Indian primary capital markets.
SBI Capital Markets commenced broking activities in March 2001 to fulfill the secondary market needs of Financial Institutions, FIIs, Mutual Funds, Banks, Corporates, High Networth Individual, Non-residential Investors and Retail domestic investors. SSL is a company, which has been formed to take over the broking operations of SBI Capital Markets Ltd. It commenced operations in the first quarter of financial year of 2006-2007.
Services currently offered includes Institution Equity, Retail Equity, Derivatives, Broking, Depository Participant services, E-Broking.
SSL is registered with the Securities Exchange Board of India for its various services, a summary of which is as under:
Registered with/as Registration no.
SEBI- Stock Broker –BSE INB011053031
SEBI -Stock Broker-NSE INB231052938
SEBI- Stock Broker-NSE- F&O INF231052938
SEBI – Portfolio Manager INP000002098
SEBI- Depository Participant IN-DP-CDSL-370-2006
Major IT firms like Infosys, Wipro, TCS are hiring 10,000 to 15,000 staff, giving boost to new house purchases.
Mr. Akshit Shah, Real estate analyst , SBI Cap Securities said, "Normally, IT (Information Technology ) companies give salary rises and bonuses during the March-April quarter, and employees start planning their purchases, notes .Besides this, the festive demand has also helped the house sales."
Highlights of SBI Cap Securities Report..!
# While absorption is steady, the number of new launches in the Bangalore City, has come down sharply from monthly average of 70 lakh sq. ft to 40 lakh sq. ft a month now. This has helped it to keep inventory levels under check.
# Absorptions have been steadily declining at the NCR (National Capital Region) and Mumbai, the India’s largest realty markets.
# The absorption of houses has come down from 1.5 crore sq ft to 2 crore sq ft a month to 1 crore sq ft now in the NCR, while the Mumbai is seeing absorption of 60 lakh sq. ft. It is a two yeas low.
# NCR has a inventory level of 13.20 crore sq. ft. This is higher than other cities, but it has come down from a peak of 15 Crore sq. ft in 2010, courtesy lower pace of newer launches. Inventory in months of sales at 12 is higher than 2 years average of 9.
# Due to lower absorption, the inventory levels in Mumbai have touched 9.9 crore sq. ft and in terms of inventory in months of sales stands at 16 months, compared to 8 months in 2010. This is one of the highest levels in India.
# In case the approval process in Mumbai fastens.There will be a sudden rise in the inventory, which will push the developers to reduce the property prices. The saviour is considerable improvement in absorption, which seems unlikely at the current property price levels.
About SBI Cap Securities..!
SSL (SBICAP Securities Ltd) is a 100% subsidiary of SBI Capital Markets Ltd which is one of the oldest players in the Indian Capital Market and has a dominant position in the Indian primary capital markets.
SBI Capital Markets commenced broking activities in March 2001 to fulfill the secondary market needs of Financial Institutions, FIIs, Mutual Funds, Banks, Corporates, High Networth Individual, Non-residential Investors and Retail domestic investors. SSL is a company, which has been formed to take over the broking operations of SBI Capital Markets Ltd. It commenced operations in the first quarter of financial year of 2006-2007.
Services currently offered includes Institution Equity, Retail Equity, Derivatives, Broking, Depository Participant services, E-Broking.
SSL is registered with the Securities Exchange Board of India for its various services, a summary of which is as under:
Registered with/as Registration no.
SEBI- Stock Broker –BSE INB011053031
SEBI -Stock Broker-NSE INB231052938
SEBI- Stock Broker-NSE- F&O INF231052938
SEBI – Portfolio Manager INP000002098
SEBI- Depository Participant IN-DP-CDSL-370-2006
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