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%.
