Properties By Manny

One Price Trend: 5 Indian Cities Taking the Charge

Although there are several factors that influence the demand and supply in real estate, price is the most crucial determinant that also influences the general health of the economy and realty market. When making an investment, price is what drives decisions, owing to the fact that everyone has a set budget in mind. Despite past corrections and ongoing discounts, prices of real estate are still too high to be attractive for many. This has been validated by the RBI’s latest Residential Asset Price Monitoring Survey, according to which the housing affordability has worsened over the past four years. From 56.1 in March 2015 to 61.5 in March 2019, the HPTI (house price-to-income) ratio has also increased.

 “One price trend” refers to an all-inclusive index that measures price movements of localities across regions in each city. Whether you are planning to buy a flat in Goregaon or any nearby location, the index educates you on the best city to plan your real-estate investment in. To help you take the plunge, we list below, the Indian cosmopolitan cities that best reflect the “one price trend”:

Data as on August 2019:

1)   Mumbai

Despite RERA rollout in Maharashtra and the highest prices in the country, the number of new launches in Mumbai has increased over the past two years. Given the pace of sales, it might take more than 2 years for the new inventory to be completely sold out.

6-month price change: -1%

12-month price change: -3%

Unsold units: 1,36, 525

1-year change: 14%

Quarters required selling this off: 8.5

Age of inventory (QTRS): 15.5

2)      Chennai

Unlike Mumbai, lunches in Chennai had been few. Owing to slow sales, the prices witnessed a drop and so has the inventory. There has also been a drinking water crisis in the city which might further, push down the prices.

6-month price change: 0%

12-month price change: -3%

Unsold units: 17,810

1-year change: -21%

Quarters required selling this off: 14.4

Age of inventory (QTRS): 4.5

3)      Delhi NCR

The sales in Delhi NCR have increased considerably and so has the number of new launches. And while the real-estate prices have risen steadily, the inventory has declined. Considering the pace of sales, it might take more than three years for the inventory to clear off.

6-month price change: 4%

12-month price change: 3%

Unsold units: 130,001

1-year change: -18%

Quarters required selling this off: 12.9

Age of inventory (QTRS): 19

4)      Hyderabad

The highest surge in property prices has been in Hyderabad. The inventory, on the other hand, has gone down. The unsold stocks are believed to exhaust within three months, if the sales continue at the same pace.

6-month price change: 7%

12-month price change: 9%

Unsold units: 4,265

1-year change: -67%

Quarters required selling this off: 1.1

Age of inventory (QTRS): 15.8

5)    Bengaluru:

The number of sales in Bengaluru has increased. Although there have been many new launches, inventory has declined. The improvements in infrastructure are expected to further accelerate the property prices.

6-month price change: 3%

12-month price change: 2%

Unsold units: 85,387

1-year change: -14%

Quarters required selling this off: 8.6

Age of inventory (QTRS): 12.5

The scope for further price corrections is very minimal, considering the above-mentioned factors. Should you buy the luxury apartment in Mumbai that you had been planning to buy or time the market is the big question? While you would naturally be tempted to wait for a price correction, it’s not worth it, given the current scenario.


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