Wednesday, 6 August 2014

The Property Market observed a drip in the early half of the Year 2014

The real estate market of has been observing some shake since the last six months of the past year and the early half of 2014. This has not been too promising for many developers as per the data provided by the real estate advisory service provider.

Major projects have come to a standstill due to the delay in their supply. Cities like Mumbai and Delhi have the highest number of unsold inventories among all major metro cities where as Mumbai and Gurgaon have the most luxurious and expensive, high budgeted unsold inventory of up to 1 Crore. This survey was carried out in cities like Noida, Kolkata, Chennai, Gurgaon, Pune and Bangalore.

The real estate market in the Delhi NCR has decreased when compared to the last year. It was also stated that the launches suffered a decrease by 50 % and also there was sale volume depreciation by 22% during the early quarter of 2014 which when compared to that of the last year of 2013.

Affordability has been difficult due to the property prices striking high whereas the income level still is stagnant. It is also clear that as nearly 40% of the projects under construction have been delayed it has resulted in the tarnishing if the buyer confidence and hence it has reduced their interest which is quite visible in the slowdown of sales. Nevertheless the study showcases that in spite of the 49% potential buyers in the area is still investing from a projected view point there is still a hope for the correction in the real estate market. Thus, this correction will eventually result in the investment appreciation in the market.

In southern India the market has been a bit stable, the sales figure in Bangalore has gone up by 6 % each year. The survey revealed that Bangalore’s property market caters to 80% mainly the end users which constitute of the large consumers who are composed of the local buyers and professionals who are working also it includes the client who are NRI’s.

The IT Hub and the Silicon city alone have accounted for 17% of the new launches and has witnessed a hike of approximately 8% in the fresh supply in the similar quarter while other metro cities have witnessed a decrease on the same front. This clearly depicts that the real estate market in Bangalore is pretty unaffected even because of the predominant worse economic scenario. The builders still continue to supply the best options for both the middle as well as the upper middle section.

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1 comment:

  1. Income is stagnant, but prices are increasing. There is no drip in the real estate prices. In the time of Elections the prices got slow down but now again prices are getting increased exponentially. I think property buyers has to wait more 4 months to see the reduced prices in the real estate.