Builders across
India are a worried lot as unsold housing stock has been piling up in the
recent months.
Chennai's unsold
housing stock, for instance, has risen from 20,000 units a year ago to 45,000
units now as per a study conducted by international realty consultant Jones
Lang LaSalle (JLL) India.
Sales have
dipped across 7 major markets in India in the first quarter of 2013, said JLL
India Chairman and Country head Mr. Anuj
Puri.
As against
80,000 apartments sold in the last quarter of 2012, only 65,000 units were sold
between January and March this year (2013). A sizeable portion, about 39 % of
these sales happened in the National Capital Region (NCR).
City Name Apartments Sold of %
NCR 30%
Mumbai 18 %
Bangalore 15 %
Chennai 13 %
Pune 8 %.
Unsold
inventory..!
City
Name Unsold Inventory Period
All
India 15 Months
Chennai 10 months.
Hyderabad 12 months
Kolkata 12 months
Pune 14 months
Gurgaon 14 months
Bangalore
23 months
Mumbai accounted
for 18 %,Bangalore 15 %,Chennai 13 % and Pune 8 %.
The waiting
period for unsold inventory in Chennai city
is the lowest among 7 major Indian cities, said Mr. Puri.
While the
average waiting period for a completed apartment to get sold in India is 15
months, in Chennai it is only 10 months. Hyderabad & Kolkata have a
slightly higher waiting period of 12 months, Pune & Gurgaon 14 months
& Bangalore 23 months.
An average
apartment in Mumbai, which has the highest waiting period, gets sold after 34
months of completion. It is this
comparatively higher demand for residential apartments that helped Chennai
rebound soon after the 2008-09 realty slump, noted Mr. Puri.
Differentiating
between Chennai city and outlying areas, JLL India MD Badal Yagnik said, While
the demand for housing in the core city is quite high even now, it has slowed
down in the suburbs. He attributes the slump in the suburbs partly to an
unprecedented glut in supplies and partly to a steep hike in prices, especially
on the Old Mahabalipuram Road in a short span of 6 to 9 months. Until a year
ago, apartment price on the OMR was in the region of Rs. 4,000 per square feet.
It suddenly went up to Rs. 5,500 per square feet in areas such as
Sholinganallur & Thoraipakkam, which
still lag in good social infrastructure.
About 35 % of
Chennai suburbs unsold housing stock is on the OMR, said India Property CEO Mr.
Ganesh Vasudevan. If investors who have funded the projects find it difficult
to exit, the market may crash as it happened in the case of NCR, he said. Too
much concentration by builders on OMR is the bane of Chennai, noted Arun
Excello CMD Mr. P Suresh.
When so much of
the development is happening on the OMR, transportation facility and social
infrastructure need to be improved manifold.
SRC: TOI
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