Absorption rate of properties in South India is good
Real estate in the southern part of India has seen stable sales and better than the north. This has happened because of the cautious pricing strategies adopted by local builders in the south Indian cities.
Everybody, from banks to realty developers to the first-time buyer feels a lot more comfortable in investing in the properties in South India.
It is also noticed that in the north, a passion for real estate along with the need to park black money has pushed up property prices dramatically in recent times.
The unsold inventory is far lesser in south. Chennai and Hyderabad have a total of 42.75 million sq ft and 33.38 million sq ft of unsold stock each.
In comparison, properties in Mumbai metropolitan region and NCR have 121 million sq ft and 233 million sq ft of unsold inventory, which will take at least 23-40 months to get absorbed,
On the housing finance front, the southern cities accounts for nearly 40% of the nationwide disbursals of Rs 1.95 lakh crore for 2011-12.
Mumbai and Delhi-NCR have slowed down, Chennai, Bangalore, Hyderabad, Pune and Kolkata have led the demand for home loans in the country.
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Source: Times of India
