Project launches in Delhi NCR come down by 33%

All-In­dia fig­ures down by 12%, Chen­nai sees the sharpest de­cline

HT Estates - - FRONT PAGE - Van­dana Ram­nani

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.

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