Bengaluru & Pune Emerge As India’s Top Real Estate Markets, Mumbai Slips To 8th Position
As a per a recent ranking and study of real estate market in India conducted by PropEquity, a real estate data and analytics firm, it has been revealed that property occupancy and sales both have drastically dropped in North India. Delhi-NCR’s real estate market reduced by 27% in the last 12 months as it is now at the bottom of the table.
All the cities of NCR have dropped their ranking: Noida is not even in the top 10, whereas it was placed at #4 in 2009; Gurgaon has slipped from #7 to #10; Ghaziabad from #10 to #11.
Meanwhile, Bengaluru, the Silicon Valley of India has defied all odds to emerge as the top real estate market in India. In 2009, Bengaluru was ranked #6.
At #2 rank is Pune. In fact, Pune is the only city which has consistently maintained it’s ranking of #2 position, even as Mumbai & Thane witnessed heavy fall.
Chennai has also improved it’s position to reach #3 from #5 in 2009.
Hyderabad also showed immense improvement as it jumped to #4 from #10, 5 years back.
Here are the top 14 cities in 2015 for real estate market:
Unsold Units Cross 6.5 Lakh Mark in India
PropEquity also released data from it’s research of unsold real estate units in the top 6 Indian cities, and the sentiments reflect the ranking.
Delhi-NCR region witnessed a drop of 27% in purchase of real estate, with worst ‘Months inventory’ at 71 months. Comparably, Bengaluru has 27 months and Chennai has 36 months.
‘Months Inventory’ shows us the months which are required to consume all unsold units; hence Delhi-NCR region needs 71 months to sell all its unsold apartments and commercial properties.
On a National Level, there are 6,88,000 units unsold, which constitute 919 million square feet. This is risen 2.48%, compared to last quarter. Overall, collectively, India has 39 ‘months inventory’ as of now.
However, the good news is that overall sales in real estate in India have increased 2% in this quarter. Bengaluru, which has emerged as the top real estate destination, led the pack with 31% surge in sales, followed by Mumbai which registered 25% increase in sales.
Interestingly, 21% of all new properties listed are in the range of Rs 50 lakh to Rs 1 crore; whereas 29% are in the range of Rs 25 lakh to Rs 50 lakh.
Another shocker: Mumbai Metropolitan Region (MMR) which consists of Navi Mumbai, Thane and Mumbai has reported drastic decline in listing of new properties; which means that builders are not building new properties or they are not being listed in the open market. In 2014, only 59,441 units were launched and listed for sale, compared to 1,19,528 in 2013.
At 9.3% Mumbai registered the highest increase in price, maybe due to the fact that fewer properties were listed and demand is surging.
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