Launches drop by 45%

The first half of 2015 saw a sharp drop of 45% in new launches and 19% fall in sales vol­umes across the coun­try. Sit­u­a­tion likely to im­prove by the lat­ter part of this year as there will be a ‘slight’ im­prove­ment in the mar­ket, re­veals a real es­tate surve

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Real es­tate pro­ject launches con­tin­ued to plum­met and sales vol­umes dropped in the first half of 2015, the rate of fall in launches ex­ceed­ing that of ab­sorp­tion. This in­di­cated that the res­i­den­tial mar­ket was striv­ing for equi­lib­rium. For the first time in three years, the de­mand for homes ex­ceeded sup­ply, the­o­ret­i­cally sig­nalling a price rise in the com­ing quar­ters. How­ever, this seems to be more of a cor­rec­tive phase, heading to­wards a sta­ble mar­ket, re­veals an In­dia Real Es­tate Out­look re­port for the first half of 2015 by Knight Frank.

While sales vol­umes dropped by 19% dur­ing the first half of 2015 as against the first half of 2014, new launches fell by a whop­ping 45% dur­ing the same pe­riod. The pos­i­tive news was that with the eco­nomic sce­nario im­prov­ing and cap­i­tal in­vest­ments show­ing signs of pick­ing up, some im­prove­ment was ex­pected in the new launches and sales vol­umes across all mar­kets in the sec­ond half of this year.

New res­i­den­tial launches have fallen in the top eight cities of In­dia dur­ing the first half of 2015. The Na­tional Cap­i­tal Re­gion (NCR) wit­nessed the sharpest de­cline at 68% dur­ing the first half of 2015 with a mere 11,360 res­i­den­tial units launched.

Ben­galuru sur­passed Mum­bai and

NCR dur­ing the first half of 2015 in launches. Based on in­ter­ac­tions with de­vel­op­ers in the top eight mar­kets, and on analysing the pipe­line, the re­port had pos­i­tive pro­jec­tions for the sec­ond half of 2015 for Mum­bai, NCR, Ben­galuru and Pune. De­spite this, the yearly num­ber of new launches dur­ing 2015 will fall short by 36%, 59%, 25% and 5%, re­spec­tively, com­pared to 2014.

Apart from Pune, home sales have fallen across the top eight cities of In­dia dur­ing the first half of 2015. NCR wit­nessed the sharpest de­crease in sales vol­ume, at 50%. Only 14,250 res­i­den­tial units were

sold, a num­ber that’s much lower than that of Mum­bai, Ben­galuru and Pune.

Mum­bai con­tin­ues to re­tain the top slot among the top six cities for achiev­ing the high­est sales vol­ume in the first half of 2015. This was fol­lowed by Ben­galuru and Pune. Al­though the vol­ume of home sales has been shrink­ing in both the top res­i­den­tial mar­kets — Mum­bai and NCR — Mum­bai has man­aged sales at a de­cent pace, which is re­quired to re­duce the un­sold in­ven­tory lev­els.

The NCR mar­ket, on the other hand, did not do bet­ter as short-term in­vestors, who had ear­lier been boost­ing sales

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