50% drop in residential unit absorption in Q1 in NCR and MMR

The total residential unit absorption numbers in the National Capital Region ( NCR) and Mumbai Metropolitan Region ( MMR), plunged over 50% due to economic slowdown in the latest first quarter of the calendar year 2012, states a research conducted by PropEquity, one of India's leading real Estate data analytics and research firm.

The study reveals that the total absorption in NCR has dropped to 15,104 units from previous years' 35,420 units. Total residential supply in the First Quarter of the Calendar Year 2012 was 107,731 units.

In MMR, the total absorption fell in the First Quarter of the Calendar Year 2012 to 11,473 units from 27,676 units. The Total supply in First Quarter of the Calendar Year 2012 was 89,461 units.

Surprisingly, the IT Capital of India, Bangalore has relatively performed better and witnessed a drop in absorption by just 18%, the study points out.

Samir Jasuja, Founder and Chief Executive Officer of PropEquity, says "The take-up rates in key micro-markets have fallen significantly. In the coming Quarter, there would be strong pressures on many micro-markets and we expect inventory overhang to increase and absorption could continue to slow down. Mumbai and Gurgaon have already seen one of the sharpest falls in absorptions; with MMR seeing a drop of 58% and NCR with a drop of 57%. If this trend continues, there could be 'stage 1' price correction in the range of 5% to 20%, especially in micro-markets of NCR, MMR and Hyderabad,".