But as per the report by Liases Foras, an independent non-broking real estate research company, the beaten down sector in Jaipur is not out of woods.
JAIPUR: Home sales have shot up by 22% in Jaipur in the quarter ended September compared to same period last year. According to the findings of a report tracking 35 top cities in the country, residential property sales have risen in 15 cities with Jaipur witnessing second highest rate of growth after Nashik at 25%.
But as per the report by Liases Foras, an independent non-broking real estate research company, the beaten down sector in Jaipur is not out of woods. Its unsold stock continues to be one of the highest in the country.
An efficient market maintains 8-12 months of inventory. It represents the number of months required for the stock in the market to be absorbed according to the existing demand. In case of Jaipur, the inventory level stands at 56 months in the said quarter, dropping marginally from 58 months (5%) in the same period last year.
Chennai is the only city covered in the city where the overhang is higher than Jaipur at 76 months.
It appears that despite the sales growth of 22%, the inventory level has not come down, rather the unsold houses have risen by 17%. It indicates that along with the high sales growth, new supply has come into the market.
Anand Mishra, president CII-Rajasthan, also director of a real estate company, said, “It clearly shows that both demand for houses and new supply in the market has expanded which is a good sign.”
Majority of the new projects has come in the affordable category. But stakeholders in the industry said that these projects have also added to the glut and demand has not kept pace with supply. But there is a revival in demand for houses in the price range between Rs 40-75 lakh.