De­cline in res­i­den­tial sales in six ma­jor cities

Accommodation Times - - Feature - A Res­sex Re­search Re­port By Mr. Pankaj Kapoor

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.

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