The sales volume of 25 listed real estate companies has almost halved from 21.85 million square feet to 11.80 million square feet over the past eight quarters, says the latest findings of Knight Frank India.
The volume has fallen by 43% during the above mentioned period, according to the global real estate consultant.
Collectively, the residential properties in Bangalore and Chennai have witnessed highest growth in market share from 16% in Q4FY12 to 33% in Q4FY14.
Though companies based out of north India continue to dominate the Indian realty market in the sales volume, their share continuously fell from 75% in Q4FY12 to 51% in the latest quarter.
Delay in approvals, high cost of funds and slow uptick in the sales volume dried up the liquidity for the cash-starved real estate companies which in turn log jammed the construction activity across India, says Knight Frank.
However, the residential property prices across major cities have witnessed a double digit growth rate during Q4FY12 to Q3FY14, it says.
