INDORE: Commercial capital of the state — Indore has been placed 8th in real-estate market in terms of highest sales, price, supply, absorption, inventory and new launch trends.
Covering over 65,000 projects of 16,000 developers across 42 cities in India PropEquity, an online subscription based real estate data and analytics platform for tier II cities, released a list of top tier-II cities in which Indore was ranked 8th.
Ten key parameters have been taken into account to generate the rankings. Samir Jasuja, founder, PropEquity, said, "Real estate sector is witnessing a downturn as compared to previous years. Still, condition of tier-II cities are better than tier-I cities."
Study also looked at execution delays and size of the market in value terms. Interestingly the 19 Tier-II cities (consolidated) have a total market size in terms of annual primary sales of Rs 326 billion annually, which is lesser than the market sizes of Bengaluru at Rs 361 billion and Mumbai at Rs 341 billion.
As per survey new residential supply in the top 19 tier-II cities has fallen by 64% in the last two years, as against a fall of 40% in top 14 tier-I cities, in the same period. "Right now the prices of real estate projects are stagnant for the past more than one year. Madhya Pradesh is working on low margin and as compared to metro cities and real estate projects in state are comparatively cheaper. Buying capacity of the consumers has increased and with the newer projects coming in and there has been a comparative increase," said Sandeep Shrivastava, president, CREDAI (Confederation of real estate developers association of India) Madhya Pradesh.
In the survey, Kochi has been ranked number 1 followed by Nashik, Vishakapatnam, Vadodara, Trivandrum, Jaipur, Mangalore, Indore, Goa and Coimbatore.