Terminology Used

Inventory is the unsold stock between two dates of survey. It covers all new launches (new additions) as well as carried-forward inventory from the previous survey: Previous Unsold + New Additions.

Demand is sold between two dates of surveys.

Price is the Weighted Average prices against the Unsold (Inventory).

The market efficiency is the ratio between the average sale movement per building and the rate per sq ft. The ratio suggests demand elasticity i.e. the impact on demand given the rise in the property rate. In other words, if the average sale per building is increasing with the increase in rate, the market is efficient. Conversely, reduced sales means the market has become relatively inefficient to that extent. In real estate parlance, supply brings in demand. Meaning, if two new buildings come up in the same location where a building is selling 10 units per month, the sale of 10 units may get distributed among the three buildings. It is possible that while sales in the first building could drop from 10 to 8 units, the 2 new buildings could create additional sales of 8 units each, thereby taking the overall sales from 10 to 24 units. But, the average sales per building would have come down from 10 to 8 units. Alternatively, it is also seen that sales in all the buildings generally go up like a typical market development.

Business Turnover index represents stock the value of the trade or in other words business done during the period. This is calculated by multiplying the sq. ft. sold during the period with prevailing prices.