New res­i­den­tial launches decline

Delhi-NCR was the only area that reg­is­tered cor­rec­tion in its quoted cap­i­tal val­ues dur­ing the year

HT Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent

New res­i­den­tial unit launches across top eight cities de­clined by 12% year-on-year in 2014 with launches to­talling 153,000 units. The top three cities of Ben­galuru (27%), NCR (17%) and Mumbai (16%) com­prised of 60% of the to­tal new launches in 2014. The num­ber of new unit launches dropped sub­stan­tially (46%) in Hy­der­abad as de­vel­op­ers rec­on­ciled to the chang­ing mar­ket dy­nam­ics post the bi­fur­ca­tion of the state.

Delhi-NCR was the only city that reg­is­tered cor­rec­tion in its quoted cap­i­tal val­ues dur­ing the year. Apart from Noida, which wit­nessed an ap­pre­ci­a­tion of 5-6% in both mid and high-end prop­er­ties, quoted cap­i­tal val­ues cor­rected in the range of 2-11% due to high lev­els of un­sold in­ven­tory in other sub­mar­kets within the NCR. South- east Delhi sub­mar­ket com­pris­ing of lo­ca­tions such as New Friends Colony, Kalindi Colony, Ish­war Na­gar, Kailash Colony, etc. reg­is­tered high­est year-on-year cap­i­tal value cor­rec­tion of 11% in mid seg­ment units. The luxury seg­ment in Gur­gaon recorded high­est an­nual cor­rec­tion of 7%, across the top eight cities due to sub­dued de­mand for th­ese high-priced units, says a re­port by in­ter­na­tional prop­erty con­sul­tants - Cush­man & Wake­field.

In 2014, ap­prox­i­mately 27,000 units were launched in Del­hiNCR, a 30% decline from the pre­vi­ous year. Due to sub­dued de­mand and sig­nif­i­cant un­sold in­ven­tory, de­vel­op­ers launched fewer projects in 2014. In 2014, ma­jor­ity of the projects were launched in the sub­ur­ban and pe­riph­eral lo­ca­tions and were tar­geted at af­ford­able and mid seg­ments, which have wit­nessed con­tin­ued de­mand. About 61% of new unit launches were in Noida i n sub­mar­kets such as Cen­tral Noida Ex­ten­sion, Ya­muna Ex­press­way and Noida Ex­ten­sion. Gur­gaon wit­nessed launches pri­mar­ily in the af­ford­able seg­ment along Sohna Road and mid seg­ment along the SPR (South­ern Pe­riph­eral Road) and in New Gur­gaon. Mid seg­ment had the high­est share (69%) in to­tal units launched dur­ing the year, fol­lowed by af­ford­able seg­ment (22%). De­vel­op­ers of­fered heavy dis­counts as well as var­i­ous pay­ment schemes/ plans were given to woo buy­ers and gar­ner sales. How­ever, the over­all trans­ac­tion ac­tiv­ity re­mained sub­dued dur­ing the year. Delhi gov­ern­ment’s de­ci­sion to hike cir­cle rates fur­ther ham­pered the buyer sen­ti­ments. Apart from Noida, which wit­nessed an ap­pre­ci­a­tion of 5-6% in both mid and high-end prop­er­ties in the third quar­ter of 2014 (pri­mar­ily due to sig­nif­i­cant progress in ap­provals on the ex­ten­sion of metro line from Noida City Cen­tre), quoted cap­i­tal val­ues cor­rected in the range of 2-11% due to high lev­els of un­sold in­ven­tory in other sub­mar­kets within Delhi-NCR.

Mid seg­ment res­i­den­tial units con­tin­ued to re­main a favourite amongst de­vel­op­ers with a two-third share in to­tal launches; also, unit launches in this seg­ment in­creased by 5% from the pre­vi­ous year. Unit launches in the high-end seg­ment dipped by 29% in a year; whilst in the af­ford­able seg­ment they de­clined by 38% from the pre­vi­ous year. Although luxury units con­trib­uted only 1% to to­tal unit launches, it in­creased by five times from the pre­vi­ous year, the re­port added.

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