Absorption rates in key cities continue to fall developers look up to the festive season

(prHWY.com) November 15, 2012 - Gurgaon, India -- Gurgaon, November 06, 2012
PropEquity, India's leading Real Estate Data Analytics and Research firm on Tuesday released a report which showed that residential unit absorption numbers in the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) have dropped as compared to last year's absorption numbers. The ray of hope for developers is the festive season period between September to December which is generally associated with high sales.
In a comparison between NCR, MMR and Bengaluru, the sharpest drop has been noticed in the NCR Region with the best performer being Bengaluru.

Samir Jasuja, Founder and Chief Executive Officer of PropEquity, says "Although the take up rates in NCR and MMR have improved as compared to the performance in first quarter of the Calendar Year 2012, yet the dropping numbers still indicate towards the downside risks looming over the market. Between January to August 2012, the NCR market has seen a drop of 42% and the MMR market has seen 34% lesser sales when compared to last year's sales figures pertaining to the same time period. Hence, developers are laying more stress on offloading their inventories this festive season. A few have even launched new projects in the luxury segment to get the best out of customers in this upbeat environment."

In a research conducted for the first eight months (January to August, 2012) of the Calendar Year 2012, the total absorption in NCR is 47,363 units, a 42% drop from last year figures. The new launches also took place at a slackened pace during these eight months at just 55,001 units.

In MMR, the total absorption stood at 45,049, a drop of 34% from last year figures. The new launches during these eight months were 47,559 units.

Gaurav Pandey, Senior Vice President & Head - Research and Consulting, says "The major impact of the current economic uncertainty has been reflected in investor driven markets. However, end-user driven markets have not been affected so badly. The IT city of Bengaluru has surprisingly fared the best amongst NCR and MMR and has been able to achieve sales numbers of 24,734, just 3% behind the last year's sales. One of the main reasons being that the prices in the city are still affordable and are much attractive to the end user."

The recent rate cut in CRR under the Monetary Policy 2012-13 is a positive step in the right direction but what the sector needed was a further cut in the repo rate which would have stimulated sales. The year has been a challenging one for the real estate sector and currently the only ray of hope to stimulate sales is the festive season. In short-term, continued monetary policy easing is expected.

About PropEquity:
PropEquity is India's first online real estate intelligence platform that tracks over 45,000 projects of 8,200 developers over 40 cities and features over 5 years of catalogued data on the platform.

P.E. Analytics, the company behind PropEquity is built on pure innovation. The products created by the company are unique in Indian context and have been validated by the market and marquee customers. The company's endeavor is to create an information service enterprise through continuous innovation and integration of real time data, analytics and cutting edge technology to achieve higher transparency. Its key beneficiaries include over 100 Real Estate PE Funds, Developers, Institutions, Retail and other industries that need research, data and analytics. It currently has 250 employees.

PropEquity's offering include Collateral Risk Management, Realty Index, B2C - One Click Report and Catchment Area Analysis.

P.E. Analytics has been founded by Samir Jasuja, a serial entrepreneur with over 18 years of domain experience in Real Estate, PE & Financial Services. Catch us live at NDTV Profit's "The Property Show".

More Info: http://www.propequity.in/press-releases/absorption-rates-in-key-cities-continue-to-fall-developers-look-up-to-the-festive-season.aspx

###