Housing Trends – North Vs South : A CommonFloor Report
At a time when realtors all across the country were witnessing sluggish sales, delays in project launches and high interest rates, the realty sector in South India looked fairly better according to several real estate analysts. To make a comparison between North Indian cities of the National Capital Region (NCR) and South Indian cities such as Bengaluru, Chennai and Hyderabad, the former was reeling under high inventory pile-up and low sales during the Q2 2012. The latter did show some downward trend too during 2013, but the scenario was far better here than its northern counterpart. Though the sales picked up a bit during 2013 in NCR, the absorption of housing projects are still low compared to its South Indian counterparts.
“As part of ‘Real Insights’ into real estate, CommonFloor.com has come up with a detailed report on the Indian real estate market for the northern and southern regions with in-depth analysis based on CommonFloor data.
For detailed report“ 
There are several factors that have created a positive outlook for the realty sector and investors in South India.
Higher growth potential
Some inferences may be drawn comparing different trends.
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Capital values in the southern cities are lower than that of Delhi. While NCR has a decent weighted average price, the fast growth in the WAP in south indicates a healthy demand for housing units.
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The supply-absorption gap is lower in the southern cities than that of NCR. This means that there is a good demand for housing units while the supply is high.
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Southern cities such as Bengaluru continue to witness more and more project launches.
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The southern cities offer a higher unit size compared to their northern counterparts due to the lesser population density and WAP.
This indicates that the southern cities of Bengaluru, Chennai and Hyderabad have a higher growth potential compared to the NCR region and as such, continue to attract more builders and investors. Builders in the northern regions will also have to revisit the quality of construction, on time delivery and affordability of projects to remain competitive and sustain the momentum they have gained.
