The residential segment continues to see high demand, which would lead to a rise in rental value by 10 to 15 per cent and particularly IT hubs like Bangalore and Pune, and cities like NCR and Mumbai is likely to witness this.
This year approximately about 6, 59,000 units will supplemented in the residential segment, which is likely to out do the recorded numbers over the past few years.
According to one of the real estate research firms, with meager supplies in consecutive years, the market is moving ahead from last year and the research reports also showed figures that in a committed units of 4, 06, 000 around 2, 90, 000 units were delivered, which is 71 per cent of committed units. In Gurgaon around 67 per cent about 15, 196 units were delivered of the committed supply, in Mumbai 75 per cent around 14, 140 units were delivered, in Noida 49 per cent about 18, 016 units were delivered and in Pune 75 per cent roughly of 44, 894 units were delivered.
Although the supply is likely to rise, the property prices would not be effected but the rental values would rise. One of the industry expert says that the increase in supply is would not affect the property prices as most of the properties are completed or nearly in completion stage and said that rental value would rise by 10 to 15 per cent due to gap between demand and supply.
The demand in top cities of the country like NCR, Mumbai, Bangalore, and Pune is greater than the supply. An executive from a leading developer said that post-election market is likely to get stabilized and the demand may increase further with the companies who had put on hold would come around. Most of the developers are focused on clearing the inventory and have hold on new launches and many developers with few new launches are waiting for post-election results, hoping for new financing and marketing stratagems to clear their surplus inventory.
One of the veteran says that the property prices are likely to rise in the H2 of 2014 due to the decrease in piled up inventory and rising input costs.
The Chief Executive of Prop Equity says that 71 per cent of delivery in 2013 with the slow market conditions is not bad. This shows that developers trying to meet the expectation of both ends by delivering projects on time though the construction costs have increased and interest rates are high.
According to the report of a consulting firms, the inventory level across the country raised for 30 months in the quarter end of December 2013. In which Mumbai Metropolitan Region (MMR) recorded the highest and stood at 46 months. Inventory is considered as the number of months to clear the stock based on the current pace of absorption. Generally, an inventory level of eight months shows a robust market.
One of the expert added that higher inventory are not due to delay in supplies, it is due to highly added supply and subdue of absorption and the fall in absorption is owing to the unsettled economic situations.
This year approximately about 6, 59,000 units will supplemented in the residential segment, which is likely to out do the recorded numbers over the past few years.
According to one of the real estate research firms, with meager supplies in consecutive years, the market is moving ahead from last year and the research reports also showed figures that in a committed units of 4, 06, 000 around 2, 90, 000 units were delivered, which is 71 per cent of committed units. In Gurgaon around 67 per cent about 15, 196 units were delivered of the committed supply, in Mumbai 75 per cent around 14, 140 units were delivered, in Noida 49 per cent about 18, 016 units were delivered and in Pune 75 per cent roughly of 44, 894 units were delivered.
Although the supply is likely to rise, the property prices would not be effected but the rental values would rise. One of the industry expert says that the increase in supply is would not affect the property prices as most of the properties are completed or nearly in completion stage and said that rental value would rise by 10 to 15 per cent due to gap between demand and supply.
The demand in top cities of the country like NCR, Mumbai, Bangalore, and Pune is greater than the supply. An executive from a leading developer said that post-election market is likely to get stabilized and the demand may increase further with the companies who had put on hold would come around. Most of the developers are focused on clearing the inventory and have hold on new launches and many developers with few new launches are waiting for post-election results, hoping for new financing and marketing stratagems to clear their surplus inventory.
One of the veteran says that the property prices are likely to rise in the H2 of 2014 due to the decrease in piled up inventory and rising input costs.
The Chief Executive of Prop Equity says that 71 per cent of delivery in 2013 with the slow market conditions is not bad. This shows that developers trying to meet the expectation of both ends by delivering projects on time though the construction costs have increased and interest rates are high.
According to the report of a consulting firms, the inventory level across the country raised for 30 months in the quarter end of December 2013. In which Mumbai Metropolitan Region (MMR) recorded the highest and stood at 46 months. Inventory is considered as the number of months to clear the stock based on the current pace of absorption. Generally, an inventory level of eight months shows a robust market.
One of the expert added that higher inventory are not due to delay in supplies, it is due to highly added supply and subdue of absorption and the fall in absorption is owing to the unsettled economic situations.
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