As per report released by property consultant Knight Frank, housing sales have witnessed a low by 16 per cent to nearly 2.1 lakh units in the top six cities during the last year. The decline has been attributed to the faltering economic growth leading to high property prices and costlier home loans.
The report highlighted, “A lacklustre residential market in 2012 was plagued by high property prices, relatively higher mortgage rates, weak business sentiments and a bleak employment scenario. This is reflected in the launches, which declined by 30 per cent in 2012 in comparison to a fall of 7 per cent in 2011.”
According to the Frank Knight report the top six cities are, Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad and Chennai. With the new residential property launches declining by 30 per cent, developers fear announcing fresh projects.
Amid the staggering market situation, realtors are taking one step at a time in launching their projects, “This can be clearly seen by closely studying the gap between the launch and the absorption numbers. This gap reduced to 32,000 units in 2012 compared to 82,000 and 94,000 units in 2010 and 2011, respectively.”
Residential market in NCR and Mumbai account for 60 per cent holding, followed by Bengaluru which accounts for 13 per cent, Pune at 11 per cent, Chennai at 9 per cent and Hyderabad at 7 per cent.
Source: Indiamart