<p>In case of new launches, six cities show a movement towards the mid-segment. These can be attributed to the return of buyer confidence in the residential market. <br /><br />In Bangalore, there has been a decline in unsold inventory. Owing to a partial bounce back in absorption levels, the unsold inventory records a constant decrease Q4 2008 onwards. Also, the affordable housing sector seems to be losing its competitiveness. <br />The transacted prices in affordable segment have witnessed an upward trend Q1 2009 onward.</p>.<p>Also, the mid-housing segment records stable pricing, and a marginal decline. The average transacted prices in the mid-segment exhibit stable levels with a correction in villa prices.<br /><br />The study focuses on the performance of the residential market with specific reference to the mid-segment and the much-talked-about affordable segment across Bangalore, Chennai, Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad, Faridabad, Mumbai, Navi Mumbai, Thane, Chandigarh and Mohali. <br /><br />The study takes into account the time when the initial euphoria of the affordable housing had settled and captures the current movement towards the mid-housing segment. <br />The key inferences that can be drawn from some major markets are:<br /><br />Mumbai: The city is demonstrating its maturity as a market with an increase in prices in the affordable segment after a price correction phase in Q2 and Q3 2009. However the mid-segment has registered stable pricing. A healthy trend of absorption in the first half of 2009, has reduced the unsold inventory exhibiting a positive buying behaviour in the market. <br /><br />Pune: The second quarter of 2009 witnessed the highest residential activity in terms of new launches and absorption in Pune. The city has witnessed a series of new launches which added 5300 units in Q2 of 2009. Trend of absorption shows the share of mid segment increasing from 47% in Q4 2008 to 57% in Q4 2009. The city seems to be experiencing a revival of genuine demand without any significant price corrections. <br /><br />Gurgaon: Absorption levels have bounced back to scale the peaks which were recorded during early 2008. Both, the mid and higher segments are scripting a new growth story with an encouraging recovery in absorption and 8000 units being absorbed in a year. <br />Interestingly the affordable segment is only a marginal participant. Sales of the affordable segment have gradually declined post Q1 2009. Price trends show a downward correction to the tune of 10%-15%, which has enabled a higher absorption velocity on grounds of rational pricing. <br /><br /> Noida: The third quarter of 2009 saw a zenith in the Noida market with a fresh influx of 15,500 residential units. The market also witnessed a correction of price in both the affordable and mid-segment categories. The salient pricing has caught the attention of the investor community making Noida market a hot destination amongst all NCR options. <br />The lull shadow from the period of Q3 2008 to Q1 2009, has been overthrown by healthy absorption levels due to a number of factors such as abundant land stock, construction of the Greater Noida Expressway, ‘Value-for-Money’ options, subsequent cheaper launches and thus one can actually observe a significant boost in absorption levels. <br /></p>
<p>In case of new launches, six cities show a movement towards the mid-segment. These can be attributed to the return of buyer confidence in the residential market. <br /><br />In Bangalore, there has been a decline in unsold inventory. Owing to a partial bounce back in absorption levels, the unsold inventory records a constant decrease Q4 2008 onwards. Also, the affordable housing sector seems to be losing its competitiveness. <br />The transacted prices in affordable segment have witnessed an upward trend Q1 2009 onward.</p>.<p>Also, the mid-housing segment records stable pricing, and a marginal decline. The average transacted prices in the mid-segment exhibit stable levels with a correction in villa prices.<br /><br />The study focuses on the performance of the residential market with specific reference to the mid-segment and the much-talked-about affordable segment across Bangalore, Chennai, Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad, Faridabad, Mumbai, Navi Mumbai, Thane, Chandigarh and Mohali. <br /><br />The study takes into account the time when the initial euphoria of the affordable housing had settled and captures the current movement towards the mid-housing segment. <br />The key inferences that can be drawn from some major markets are:<br /><br />Mumbai: The city is demonstrating its maturity as a market with an increase in prices in the affordable segment after a price correction phase in Q2 and Q3 2009. However the mid-segment has registered stable pricing. A healthy trend of absorption in the first half of 2009, has reduced the unsold inventory exhibiting a positive buying behaviour in the market. <br /><br />Pune: The second quarter of 2009 witnessed the highest residential activity in terms of new launches and absorption in Pune. The city has witnessed a series of new launches which added 5300 units in Q2 of 2009. Trend of absorption shows the share of mid segment increasing from 47% in Q4 2008 to 57% in Q4 2009. The city seems to be experiencing a revival of genuine demand without any significant price corrections. <br /><br />Gurgaon: Absorption levels have bounced back to scale the peaks which were recorded during early 2008. Both, the mid and higher segments are scripting a new growth story with an encouraging recovery in absorption and 8000 units being absorbed in a year. <br />Interestingly the affordable segment is only a marginal participant. Sales of the affordable segment have gradually declined post Q1 2009. Price trends show a downward correction to the tune of 10%-15%, which has enabled a higher absorption velocity on grounds of rational pricing. <br /><br /> Noida: The third quarter of 2009 saw a zenith in the Noida market with a fresh influx of 15,500 residential units. The market also witnessed a correction of price in both the affordable and mid-segment categories. The salient pricing has caught the attention of the investor community making Noida market a hot destination amongst all NCR options. <br />The lull shadow from the period of Q3 2008 to Q1 2009, has been overthrown by healthy absorption levels due to a number of factors such as abundant land stock, construction of the Greater Noida Expressway, ‘Value-for-Money’ options, subsequent cheaper launches and thus one can actually observe a significant boost in absorption levels. <br /></p>
