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The unsold residential inventory in six cities rose 2.48 per cent in the March quarter, pointing to the continuing sluggishness in the real estate market.
The present inventory level stands at 6,88,000 units, measuring 919 million sq feet, according to property research firm Liases Foras.
However, overall sales are up by 2 per cent from the previous quarter, with sales in Bengaluru and Mumbai Metropolitan Region (MMR) surging by 31 per cent and 25 per cent, respectively.
The National Capital Region (NCR), which is one of the biggest residential markets, witnessed a 27 per cent decline in sales. Hyderabad saw sales fall by 16 per cent from the previous quarter.
Liases Foras data also said months of inventory stood at 39 months. The NCR showed the worst months inventory at 71 months followed by MMR at 46 months, Bengaluru (27 months) and Chennai (36). Months inventory denotes the months required to clear the stock at the existing absorption pace.
The new supply in Q4 increased by 21 per cent from the previous quarter, and 36 per cent of new supply came in the cost range of ₹50 lakh to ₹1 crore, followed by ₹25 lakh to ₹50 lakh with 29 per cent.
Meanwhile new property launches nosedived by half in the Mumbai area in 2014 even as prices rose 8 per cent, according tp research and analytics advisory firm Prop Equity.
Prop Equity said the MMR, area comprising Navi Mumbai, Thane and Mumbai, has witnessed a shocking fall in new launches in 2014 vis-à-vis 2013. Combined newly launched units in 2014 were just 59,441 compared to 1,19,528 in 2013, it said.
“MMR is going through a phase where only few sales are materialising as buyers are waiting for prices to correct. Demand in MMR is also heavily dependent on investors’ interest, and their interest is lukewarm at the moment as return on investment on realty is not significant at the moment,” Samir Jasuja, founder-CEO, PropEquity, said.
“Also investors are waiting for the new plan that seeks to allow FSI to be generally raised in MMR. Once that gets approved, we can see more demand coming in.”
However, the prices of newly launched units in 2014 continued to be appreciate by 8 per cent of the weighted average price of the three regions. The highest increase in the region was in the Mumbai area with 9.3 per cent, followed by Thane (6.5 per cent) and Navi Mumbai (5.5 per cent). The Mumbai region saw maximum number of luxury projects being launched in the region.
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