Project launches in Delhi NCR come down by 33%
All-India figures down by 12%, Chennai sees the sharpest decline
There has been a drop of 12% in new residential project launches in 2013 over last year. The total estimated launches were recorded at 1,72,500 units across eight major cities of India with Bangalore recording the highest number of units launched - a rise of 15% says a new report by international property consultants Cushman & Wakefield.
Chennai saw the sharpest decline - a drop of 39% over last year. The number of units launched in Delhi NCR also declined by 33%, the second after Chennai.
“I n t he cur rent economic scenario both buyers and developers are taking a cautious approach not only towards residential real estate but across all asset classes of real estate. However, given that most aspects of development such as construction cost, development cost, cost of land, time taken for approval and cost of debt all have been on an upward tangent developers have not been able to lower costs. Thus, many developers took to innovative marketing and pricing strategies to ensure better responses, such as in the 20:80 scheme,” says Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield.
The high- end category residential units have seen a tremendous rise of over 50% in 2013 even while the largest quantum of launches in residential units was in the mid-end category. There was a decline of 13% in the total launches of residential units in the mid-end category over the previous year. There was a sharp drop in the launches of luxury units which declined to only 1100 units with largest number of units being launched in Bangalore.
“Developers are cautious about the configuration of their properties today and revisiting their drawing boards. Alternately, lower demand for luxury residential has reduced the number of launches in this category also, limiting them to cities of Delhi (NCR), Mumbai and Bangalore which still have some demand for such units. One category which has not seen the same enthusiasm despite government backing of ECB and other benefits has been the affordable housing sector. This can be attributed to the issues of acquiring land at preferential rate and the subsequent building cost which has been restricting,” he adds.