Decline in residential sales in six major cities
The year 2014-15 began on a rather muted note with a 9% sequential decline in the area sales across the six major cities in India. With an excep’on of Bangalore, all the tier 1 cities have shown a drop in sales. The city registered a 10% growth in sales for the quarter.
NCR led the laggards with a 20% decline followed by Chennai and Hyderabad with 18% and 13%, each. MMR however was almost stagnant with a meager 2% drop in sales.
For the 1st quarter 2014-15, sales in Bangalore have been the highest, followed by NCR and Pune. Most of the sales in the city can be auributable to the new launches that have come up in the peripheral regions. However, the performance in the secondary market has been average in the city.
The new launches were led by NCR, followed by Bangalore and MMR. On a macro level, it has been observed that the price for new launches is relatively lower than the existing price level across the six major cities in India.
The cost range for new launches has been fragmented across the cities. In NCR and Pune it has been the affordable segment while in Bangalore it has been the mid-segment. At the same time MMR showed increased level of activity in the affordable and ultra-luxury segment.
On a quarterly basis, the weighted average price has been stagnant across the six major cities. Only Chennai recorded a 4% quarterly rise in the price level. MMR followed it with a minor 2% rise.
In terms of efficiency, Bangalore showed little improvement, while all the other five cities witnessed a spike in the months inventory. NCR recorded an increase from 39 to 53 months, while Hyderabad saw a rise from 42 to 47 months.
Inventory - Supply of stock between two dates of survey. It covers all new launches (new addi’ons) as well as carried- forward inventory from the previous quarter/quarters.
It can be simply represented as Previous Unsold + New Ad-
Sales / Demand - Realty-stock sold in a market between the dates of two surveys.
Price - Weighted Average Prices of the Unsold Inventory.
Business Turnover / Value
of Goods Sold - Represents the value of the trade or the business done in a certain period. It is calculated by multiplying the total sqc sold during the period with the prevailing prices.
Receipts - Represents amount developers may have received from the Business Turnover during the quarter. This is calculated on the basis of expected payment due, depending upon the construction stage of the units sold.