Monday, October 26, 2009

Ground Reality - Moderate Sales + New Launch Absorption Down

All India monthly residential sales volumes has moderated from an aggregate 19,700 units/month sold in March-May to 16,100 units in June-August across the markets we track. Residential new launch absorption has fallen from between 40%-60% in April-June to about 20%-25% in Jul-Aug.

The inventory of unsold homes in the Rs0.5-Rs3.0 mn/unit range has been increasing through CY2009. Cumulative absorption is encouraging in pockets of NCR but below 40% in some markets like Chennai and Bangalore.

Take-up across the six major markets of Mumbai, Gurgaon, Bangalore, Hyderabad, Chennai and Kolkata in August 2009 was about 70% lower vs. August 2008. However, the trajectory in Mumbai and Bangalore has improved a bit since March.

Property investors have been quite active over the past six months in Chennai and NCR with regard to take-up of new launches, however their is no significant pick-up in volume.

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