According to Prop Equity, home sales in Delhi-NCR and the Mumbai Metropolitan Region fell over 50% in the January-March 2012 quarter due to a perceptible slowdown in the economy and high home prices.
The situation in Bangalore was slightly better with an 18% drop in sales.
In the NCR, 15,104 units were absorbed compared to 35,420 in the same period last year. The total supply of residential units in the quarter was 107,731. In the MMR, absorption fell from 27,676 units a year ago to 11,473 units.
Mumbai and Gurgaon
have already seen one of the sharpest falls in absorptions with MMR seeing a drop of 58% and NCR with a drop of 57%.
If this trend continues, there could be a price correction in the range of 5-20%, especially in micro-markets of NCR, MMR and Hyderabad.
As a city, Bangalore has done better given the demand has been end-user driven and new inventories have been fairly low in the quarter. Absorption fell 18% in Bangalore to 7,704 units from 9,410 units a year ago.