1QCY13 was the third consecutive quarter to see demand slowing in Gurgaon. However, demand once again was ahead of supply. We believe the prime reasons for this trend in demand are 1) slowdown in new launches as developers focus on execution and inventory clearance; and 2) rising prices. Absorption rate in Gurgaon is slowing but is still the highest in the country among tier I cities indicating robustness in the market. We believe Gurgaon residential markets will continue to show strength on back of rising number of end-users and investors.
Prices of on-going residential projects in Gurgaon continued to move northwards despite weak macro indicators and slowing demand trends. Avg. pricing in 1Q rose by 4.5% across Gurgaon projects. We attribute this trend to – 1) lack of new launches by renowned developers; 2) Gurgaon has lowest unsold inventory in the country and 3) high speculative market. We believe this trend of relentless rise in prices could prove a dampener in the future. The unsold inventory (represented in # of quarters required to exhaust unsold inventory) remained at 3 quarter.
No comments:
Post a Comment