Gurgaon, March 22, 2013 PropEquity, India’s leading Real Estate data analytics and research firm on Friday released a report which showed that residential absorption numbers have picked up in January 2013 in the National Capital Region (NCR) when compared to January 2012 absorption numbers. However, Mumbai Metropolitan Region (MMR) is still showing a drop in absorption for the same time period. Also, the new launches have dropped in key cities except Bengaluru which is performing well.
In a research conducted for the first month of the new Calendar Year 2013, the total absorption in NCR is 8,812 units, a 46% increase from last year’s January figures. However, the new launches in NCR dropped by 35% to 5,208 units from last year January’s 8041 units.
Samir Jasuja, Founder and Chief Executive Officer of PropEquity, says “This revival in NCR is caused by higher sales velocity in Greater Noida, Yamuna Expressway, Noida Extension and Faridabad. The last year’s sales numbers for the month of January for Greater Noida, Yamuna Expressway, and Noida Extension stood at 694 units. The clearing up of the land acquisition issues lumbering upon the area along with the highly affordable units available in Yamuna Expressway and Noida Extension have resulted in the sale of 3,998 units in January 2013;even the new launches in this region have improved by 18%. However, Gurgaon is still not very upbeat and witnessed a 4% drop in absorption numbers for the time period considered.”
“The developers in key cities of NCR and MMR have controlled the new launches keeping in mind the liquidity crunch as well as the piled up unsold inventory (except Gurgaon). The dropping numbers of last year had forced the market to align itself to the buyer sentiments which is why the developers started launching projects at lucrative rates to boost sales. This low scale correction along with the latest 25 basis points repo rate cut by RBI will support the market. The market requires at least 75 basis further dip in repo rates to strengthen sales”, adds Samir.
In MMR, the total absorption for the month of January stood at 5,130 units, a drop of 14% from last year’s January figure of 5,983 units. However, the developers reduced new launches by 48% during January2013 to evade any significant demand supply mismatch. This drop in absorption is mainly driven by Thane which went down by 23% this January when compared to the same month last year.
Gaurav Pandey, Senior Vice President & Head — Research and Consulting, says “One very striking thing noticed at the beginning of this year was that in some markets the demand has picked up whereas in others the demand has continued to drop. While the new launches in Greater Noida, Yamuna Expressway and Noida Extension increased by 18%, the absorption in that region has increased more than five times in January 2013 when compared to same time last year. During the same time period, the absorption in Noida dropped by 30% and in Chennai dropped by 24%. The developers in the cities with falling demand have controlled their new launch supply to ensure a revival of the market. The Government has been taking positive steps to revive the sector. All these factors show us a new hope for the coming year and we expect the markets to pick up by the second half of the year. However, there is still a lot of ground to be covered through strong government initiatives for a sustainable revival growth. We are still in delicate times.”
The city of Bengaluru has been sailing smoothly throughout this difficult time period and has witnessed an increase of 32% in absorption and 22% in new launches this January. The sales numbers stood at 4,182 units this January viz-a-viz last January’s 3,428 units. The new launch prices in the city have seen an increase of 13% for the time period studied.
The cities of Chennai and Hyderabad also saw a drop in absorption numbers and hence the developers curbed the new launch supply. The new launches in Chennai saw a drop of 47% and in Hyderabad a drop of 35% this January when compared to the same time period last year.
About PropEquity:
PropEquity is India’s first online real estate intelligence platform that tracks over 45,000 projects of 8,200 developers over 40 cities and features over 5 years of catalogued data on the platform.
P.E. Analytics, the company behind PropEquity is built on pure innovation. The products created by the company are unique in Indian context and have been validated by the market and marquee customers. The company’s endeavor is to create an information service enterprise through continuous innovation and integration of real time data, analytics and cutting edge technology to achieve higher transparency. Its key beneficiaries include over 100 Real Estate PE Funds, Developers, Institutions, Retail and other industries that need research, data and analytics. It currently has 250 employees.
PropEquity’s offering include Collateral Risk Management, Realty Index, B2C - One Click Report and Catchment Area Analysis.
P E Analytics has been founded by Samir Jasuja, a serial entrepreneur with over 18 years of domain experience in Real Estate, PE & Financial Services. Catch us live at our “Electronic Media Coverage”