The realty capital value growth in Pune and NCR-Delhi was the highest amongst seven top cities in the country during 2012 and the average capital value growth in the country was between 1-3 per cent, according to real estate consultancy Jones Lag Lasalle.

Hyderabad and Bangalore saw slower rate of capital value growth and there is still no price correction on cards. However, the quantum of appreciation definitely reduced significantly in all the top seven cities in the country.

Like in the past, Mumbai and NCR-Delhi recorded higher absorption with Chennai and Pune as the other two cities which witnessed increased demand and absorption.

According to a statement from Anuj Puri, Chairman and Country Head, Jones Lang Lasalle, at the country level, 1,60,622 residential units were launched in 2012, as against 1,54,701 units in 2011. The average residential capital values appreciated in the range of 1-3 per cent year on year.

The high inflation impacted the sentiment and investor interest across businesses, including real estate.

The secondary business districts of Mumbai, Bangalore and Pune followed by central business districts of Bangalore and in Hyderabad, began emerging as landlord markets. This is primarily because these areas have lower than average vacancy levels from a national perspective. They command higher rentals. Among top seven cities, Mumbai and NCR-Delhi recorded drop in year on year absorption.

With a stock of 65 million sq.ft during 2012 so far, the retail mall supply across the top seven cities in India slowed considerably as compared to 2011. Mumbai, NCR-Delhi, Bangalore and Chennai together absorbed 81 per cent of the total space in 2012. This is significant considering they had absorbed 70 per cent in 2011.

Barring Hyderabad, all cities completed projects. However, the pace of completion was relatively slower during 2012.

rishikumar.vundi@thehindu.co.in