The volume trend in Chennai after falling in Feb and Mar 2010 has recovered in Apr and May 2010 to resume its flattish trend. Average monthly volumes between Apr 2009 and May 2010 are at 1.5mn sqft, lower than the 1.8mn sqft between Jul 2007 and Jun 2008. Inventory with developers continues to decline with unsold stock at 18.7mn sqft. In terms of months of sales, it is at 11 months, which indicates levels usually seen in late 2007 and early 2008.Hyderabad is the worst performing city among the top 6 urban agglomerations in India. Sales have consistently declined since Aug 2009 and they are now close to the 2008 crash lows. This follows the Telengana statehood issue and the consequent lack of clarity on Hyderabad’s status as the capital city. Although inventory with developers is declining, it is also very high at 50mn sqft and 30 months of sales. New launches have also reduced significantly since Aug 2009. We expect residential volumes in Hyderabad to remain muted in the medium term if the Telengana issue is not resolved.
No comments:
Post a Comment