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Indian real estate analysis 2012-2013


According to a real estate research, 2012 was not a thriving year for the real estate sector and even in 2013 the real estate market is not likely to witness the graph of success.
Although there is a steep rise in residential properties, the private equity sector dried up. If the land acquisition bill and the real estate regulation bill is approved, there might be a revive in the economy.
The 10 hot property markets which are likely to go well are :
The maximum new projects that have mushroomed in Gurgaon are in Golf Course Extension and Dwarka Expressway areas. The projects in Golf Course Extension are in advanced stages of construction and the region is expected to witness a strong growth with good livability. According to reports, Dwarka Expressway has witnessed 2,400 units launched every month, hence the number of investors have increased. Every year from 2009 real estate in Gurgaon is facing 30 percent growth and the market has given 12.5 percent compound annual growth rate (CAGR since then.
Around 53,000 units are coming up in Sectors 70,74,75,76,77,78,79,113,117,118,119,120 and 121 in Noida and are scheduled to be completed by 2013-15. Although the investors are advised to have a proper survey and check of the land, there are many cases that are emerging in terms of land acquisition which may delay the execution of the projects. The total supply in Noida has multiplied to 3.44 times in 2009-12. Though the satellite town was the center of the catch, due to fresh supply there is a steep fall in projects and developers are under pressure. Noida market has a good CAGR return of 7.8 percent since 2009.
Ghaziabad is refined with good mix of ready and under construction projects. With in 2013-15, around 13,000 flats are expected to be completed. The positive point that’s helping Ghaziabad to grow is the good infrastructure and proximity to Delhi as well as the commercial sectors of Noida. Around 2,440 units are expected to be completed by 2015. Raj Nagar has around 23,000 units which are under construction. During 2009-12, Ghaziabad has witnessed a decent  growth of  22 percent but the highest growth was in 2011 by 30 percent. In total, Ghaziabad has pulled to only 8.2 per cent CAGR returns from a low base.
Faridabad real estate has seen a slow growth and the execution and promotion of the projects are almost to be completed. Projects are coming up on the aerial roads. Since 2009-12, Faridabad real estate sector has seen a 17 percent growth and in 2010, the region witnessed the highest growth of 11 percent. Although the market has seen 60 percent increase in new launches, Faridabad market has given a 10 percent CAGR returns.
Most of the under construction projects of Mumbai are expected to be completed by 2015. Areas like Wadala are still launching projects with cheapest rates like Rs. 16,000 per square feet compared to the average market price of Rs. 25,000 per square feet. The highest supply in Mumbai was in 2010 and it witnessed an average of 20-23 percent of unsold stock in the last four years.
According to reports, in the key two markets – Ghodbunder Road and Kalyan Dombivali – the prices have been rising consistently at 26 percent CAGR in the last two and a half years. Thane has seen around 20-30 percent of unsold stocks in the last four years. Ulwe is a promising real estate market in Navi Mumbai where most of the construction work is supposed to be completed by201-15. Within last four years, Navi Mumbai has also faced an average of 25-30 percent of unsold stock.
The Pune market is quite stable and there is only a small noticeable increase in supply. The highest growth in Pune sector was in  2011 with 28 percent followed by 26 percent in 2010. Major IT companies are coming up in Hinjewadi and due to which 60 percent of under construction flats are sold out.
The employment opportunities in the near by areas are positive for Gachibowli. The attractive market is in Kukatpally region where the price is pretty stable. The near by hi-Tech city is expected to increase demand in the future. Hyderabad has witnessed 25-37 percent of unsold stock in four years.
Old Mahabalipuram Road and GST Road are emerging as good realty destinations as there are a significant number of under construction projects by good developers. In 2011, Chennai has witnessed the maximum supply and the city has witnessed an average  of 22-33 percent unsold stock in last four years. Although, the market faced 36 percent fall in new launches.
In-spite of slow down, Bangalore has witnessed the maximum supply in 2011. The city has 20-23 percent of unsold stocks in last four years. Moreover the market has 28 percent fall in new launches.