Property demand: Bangalore, Chennai & Gurgaon hot, Mumbai cold

Updated: April 04, 2012 14:33 IST
Realty trends in India have always kept analysts guessing. With household incomes varying across metros in the country, the task gets even more complicated. In financial capital Mumbai, buyers have kept away from the property market due to sky high prices. This is depicted by a fall in the absorption rate in the city. Absorption rate is the number of apartments sold per month of the inventory in a particular market. It is an indicator of the demand situation in a particular real estate market.
Property demand: Bangalore, Chennai & Gurgaon hot, Mumbai cold
Realty trends in India have always kept analysts guessing. With household incomes varying across metros in the country, the task gets even more complicated.

In financial capital Mumbai, buyers have kept away from the property market due to sky high prices.

This is depicted by a fall in the absorption rate in the city. Absorption rate is the number of apartments sold per month of the inventory in a particular market. It is an indicator of the demand situation in a particular real estate market.

Source: JP Morgan
Property demand: Bangalore, Chennai & Gurgaon hot, Mumbai cold
Mumbai: Currently, high prices are keeping buyers away. Over the past one year, residential prices in the city have remained flat. In pockets like central Mumbai and North Mumbai, they have increased by 10 per cent. New project launches fell 50 per cent during the calendar year 2011.

Source: JP Morgan
Property demand: Bangalore, Chennai & Gurgaon hot, Mumbai cold
Gurgaon: The city finds it on the other side of the wall. The residential absorption rate in Gurgaon rose 11 per cent in 2011. This is largely due to a high launch activity in the market.

Property prices in the market rose 17 per cent during the year. Unsold inventory in the market remains at healthy nine months of average absorption.

Source: JP Morgan
Property demand: Bangalore, Chennai & Gurgaon hot, Mumbai cold
Bangalore: The residential absorption rate grew 19 per cent in 2011. This was primarily driven by large affordable launches done by reputed developers.

Price appreciation now seems to be catching up in Bangalore with completed/nearing completion projects witnessing 10-15 per cent appreciation over the last few months. New launches in Bangalore rose 56 per cent in 2011.

Source: JP Morgan
Property demand: Bangalore, Chennai & Gurgaon hot, Mumbai cold
Chennai: The residential absorption rate in the city rose 37 per cent in 2011. High launch activity has resulted in increased unsold inventory in the market.

Unsold inventory rose to 15 from 10 months early last year. Average property prices rose 8 per cent to 30 per cent in pockets from Anna Nagar to Rajeev Gandhi Salai.

Source: JP Morgan

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