The Realty sector drops in the initial partial of 2014: A word of caution

The real estate market in India has been seeing a chum all during the last half of the year 2013 especially the first half of the year 2014. The year has not been so promising though. Many of the realty developers feel so.

As a result many of the real-estate projects have been delayed. Many new launches have come to a stagnant stage marking the delay. The data has shown a clear hit drop in some of the most potential hot spots in the construction sector.

Area like Noida and Mumbai have the highest number of inventories unsold that too these figures are much higher in all the major metros. Gurgaon and Mumbai lead to the most expansive nearly a Crore unsold inventory. The survey was initially conducted in Noida, Gurgaon, Mumbai and Pune and also other places including Bangalore, Chennai, Kolkata and also Ahmedabad.

The real estate market of the national capital region NCR has seen a huge degradation when compared with the figures of the last year. Many of the new launched have suffered a loss by 5 % and the sales volume also showed a deterioration by nearly 22 % this data is as of the first quarter of 2014 when compared to that of 2013.

The affordability factor is also going through many interrogations as the prices marked by the stagnation of the income levels remains unchanged, making the affordability highly difficult. As per the data around 40 % of the projects under the construction process have been delayed, blemishing the buyers believe or confidence. This situation has certainly reduced the interest level of people which has resulted in low sales in a much lower pace.

Nevertheless the survey clearly portrays that in spite of the present on going activities the region is still investing from a very projected and spectated perspective with the hopes that there will certainly be a rectification in the market that will exclusively result in a market appreciation of the precious investments.

The real estate market in the southern region has been much stable; as the sales in Bangalore are witnessing a hike by nearly 6% with each year passing. The survey also brought the fact much in notice that the real estate market of Bangalore caters nearly to the 80% of the end users and also possess a maximum of local purchasers who are mainly the working population and also the NRIs. In fact Bangalore nearly account for about 17 new launched and has seen a huge increase in the supply in the same amount of time which is roughly 8% when compared with other metros who have seen a tough deadline. Thus, the real estate market of Bangalore is much capable to the ongoing uncertainty and disparities prevailing in the economic matters, but still the realty builders’ still carry on to render options equally in the upper or the mid segmented sectors.