Drop in number of new residential launches
Delhi NCR witnesses a decline of 54% of approximately 4.500 units in the third quarter of this year, says a report
There has been a drop of 21% in the total number of residential units launched in the third quarter of this year (July to September) compared to last year, according to a new research by global real estate consultancy Cushman & Wakefield.
The study conducted across top eight cities of India reveals that new launches in the affordable housing segment dropped by over 50% in the third quarter of 2014 as against the same time last year.
The third quarter saw the launch of 166 new housing projects across the top eight cities with Chennai recording the highest with 45 projects while Ahmedabad recorded the lowest number of new launches of five projects in the quarter.
Delhi-National Capital Region (NCR) saw a decline of 54% in the new residential launches of approximately 4,500 units in the third quarter this year compared to the same time last year.
The shar pest decline i n launches was recorded in the af f ordable se gment which declined by 52% in the third quarter this year as against the same quarter last year. While the demand remains the highest in this segment, this is not the segment that developers prefer due to the larger scale of construction and management apart from the fact that input cost for development have started to inch upwards making it tougher for developers in the key cities of India to provide affordable housing within the city limits or even in the peripheral region.
Mid-segment, which traditionally witnesses the highest proportion of new launches, saw a decline of 14% in the same timeframe while the high end segment declined by only 10%.
Shveta Jain, ED, residential services, Cushman & Wakefield India says, “Supply has outstripped demand in most of these cities due to weak market sentiment and slower growth.”