Real estate markets have done comparatively well in Southern India, if other major markets in the country are taken into account. The market has seen more focus on completion of delayed projects, restricting new launches and designing projects that are more tailored towards catering to customer demand. This is a unique approach in comparison to many other markets where real estate developers are facing a huge pile-up of inventory. Unsold property stocks are considerably lower in the three key Southern markets than their Northern or Western peers as per experts. Chennai, Hyderabad and Bangalore have unsold inventory of close to 1.57 lakh units as of the third quarter in the end of 2021. This is just 24% of overall unsold inventory throughout India’s top 7 cities (almost 6.55 lakh units as per estimates).
Delhi-NCR has higher unsold stocks of 1.67 lakh units while the Western zone, including Pune and the MMR has more than 2.9 lakh unsold units in this period. This indicates how Southern cities are more in sync with consumer needs while developers are consciously filling up the gap between supply and demand according to many experts. The Head-Primary Sales (South Zone), Square Yards, Debayan Bhattacharya, stated that property markets in Pune, Mumbai and Delhi-NCR could not match Southern real estate markets in terms of performance with most of their projects getting delayed or stalled owing to major lockdowns in the second COVID-19 wave.
He also added that a sizable funding squeeze and labor shortages also resulted in construction getting delayed for several months in the other markets. Homes nearing completion or ready to move properties were majorly present in the luxury category while mid-segment and affordable buyers did not have many viable choices, thereby limiting purchases. Bhattacharya also stated that although new launches went up in the last few months and most demand drivers like lower rates of interest, cuts in stamp duty and stable prices of property were in place, sales figures were slower since buyers decided to wait it out for better conditions in the real estate market.
For a detailed report on this read the articles we were featured in:
The Hindu : https://bit.ly/3Idsz7h
Published Date: Dec 02, 2021
