2012: Indian Residential Real Estate sales Fall by 16%, New Launches Drop by 30%


Indian residential real estate sales in the top six cities fell by 16% in 2012, versus 14% in 2011.

According to a Knight Frank report, Real estate markets such as Delhi - NCR & Mumbai accounted for almost 60% of the total absorption among the top six cities.

Highlights of Knight Frank Report..! 

* Delhi - NCR saw the highest absorption at 37%, and Mumbai 23%. It was followed by Bengaluru at 13%, Pune at 11%, Chennai 9% and Hyderabad 7%.

* Real estate launches in 2012 declined by 30% in 2012, versus a 7% decline seen in 2011.

* Slowdown in bank credit to real estate amid economic slowdown was attributed to the stagnancy in new ventures.

* Plagued by high property prices, relatively higher mortgage rates, weak business sentiments and a bleak employment scenario, realty players were cautious of launching projects as the gap between the launch and the absorption numbers reduced to 32,000 flats in 2012 compared to 82,000 and 94,000 flats in 2010 and 2011 respectively, reflecting weak demand.

* Banks’ credit exposure to real estate developers has fallen from its peak growth rate of 23.21% in June 2011 to 3.88% in September 2012.

* The Delhi - NCR residential market will stabilise in 2013 as new controlled supply in the region will keep a check on the quantum of unsold inventory.

* The price growth in Mumbai will be muted on account of the unsold inventory and increasing share of peripheral markets.

City Name  Absorption

Delhi - NCR   37%
Mumbai        23%
Bengaluru    13%
Pune            11%
Chennai        9%
Hyderabad    7%.

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