Ahmed­abad wit­nesses 8% dip in new launches dur­ing 1st quar­ter of 2014

Accommodation Times - - .. Nation.. -

Ac­cord­ing to the lat­est re­port by real es­tate con­sult­ing firm Cush­man & Wake­field, while the num­ber of res­i­den­tial units be­ing launched has gone down, the num­ber of projects has gone up.

In Q1 2014, nearly 2,300 units were launched in Ahmed­abad, reg­is­ter­ing a q-o-q de­cline of 8%. As per the re­port, al­though the unit launches de­clined, num­ber of project launches more than dou­bled; in­di­cat­ing ab­sence of any sig­nif­i­cantly large new project (which was noted in a pe­riph­eral lo­ca­tion dur­ing the pre­vi­ous quar­ter).

With de­mand re­main­ing sta­ble in Ahmed­abad, cap­i­tal val­ues were un­changed in Q1 2014 from the pre­vi­ous quar­ter. More­over, a num­ber of de­vel­op­ers de­layed new launches and fo­cussed on clear­ing ex­ist­ing un­sold in­ven­tory. Con­sid­er­ing de­mand is higher for af­ford­able units hav­ing ticket sizes of Rs 2040 lakhs, trans­ac­tion ac­tiv­ity was rel­a­tively more in the pe­riph­eral lo­ca­tions of S.G. High­way and Bopal where such units are avail­able mainly.

Fur­ther, dur­ing the quar­ter, new launches were con­cen­trated in lo­ca­tions such as Makarba, Thal­tej and Vasna in West Ahmed­abad (33 per cent), fol­lowed by Vas­tral in the East (21 per cent) and Ra­nip in the North (19 per cent). The af­ford­able seg­ment ac­counted for 45 per cent of units launched in Q1 2014, while mid- end seg­ment ac­counted for 55 per cent.

The de­cline in num­ber of units be­ing launched in Ahmed­abad, how­ever, is con­trary to the trend other­wise vis­i­ble across the top six cities in­clud­ing Delhi, Mum­bai, Ban­ga­lore, Chen­nai, Hy­der­abad and Kolkata which saw a 43 per cent rise in new res­i­den­tial launches for Q1 of 2014.

”De­vel­op­ers have taken a con­scious de­ci­sion to launch projects in the first quar­ter of 2014 as they an­tic­i­pate sales to im­prove this year in the sec­ond half fore­see­ing eco­nomic sta­bil­ity that will most likely prompt pur­chase de­ci­sions from end users.

How­ever, as con­cerns about the in­fla­tion­ary trends in the econ­omy and an ex­pected ad­verse im­pact of the El Nino re­main, we be­lieve that a cau­tious ap­proach needs to be main­tained for res­i­den­tial mar­kets that are not pri­mar­ily driven by end-user de­mand,” said San­jay Dutt, ex­ec­u­tive man­ag­ing di­rec­tor of Cush­man & Wake­field.

Mean­while, in Q1 2014, rental val­ues re­mained sta­ble in Ahmed­abad, Chen­nai, Hy­der­abad and Kolkata over pre­vi­ous quar­ter.

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