New Property Launches Across Major Cities Drop By 44 Percent

Bangalore: In the second quarter of 2012, new property launches under residential segment witnessed slump of about 44 percent to 17000 units. The reason behind this fall is due to delay in project approvals, significant inventory in certain locations and delay in projects to coincide with new launches during the festival season, according to Cushman & Wakefield (C&W), a global real estate consultancy, reports Sobia Khan of ET Bureau.

Out of the 17,500 units launched, 70 percent are provided to the mid segment since it witnesses maximum demand from end users and investors. The financial capital of India, Mumbai has seen the maximum drop of 73 percent in residential property launches, followed by Bangalore at 67 percent and Chennai at 47 percent. New Residential property launches in other metros like Kolkata and Delhi-NCR witnessed a drop of 29 percent and 24 percent respectively. Whereas, cities like Pune and Hyderabad have witnessed growth in new launches in the second quarter of 2012.

Shveta Jain, Director, Residential Services Cushman & Wakefield India, stated that "Going forward, we anticipate an improvement in the economic scenario will provide the much needed impetus to boost the demand. Values are expected to remain stable in the short term and the developers may also offer attractive options and incentives to attract buyers during the festive season," reports Economic Times.

According to Cushman & Wakefield, there has been a steady demand in the residential segment across all the prominent cities and the capital values in almost all the micro markets also remained stable.

Furthermore, the luxury housing segment continues to see demand with a few high value transactions in cities Mumbai and Delhi-NCR. Gurgaon-NCR is one among the prominent micro markets that has recorded appreciation and the luxury housing segment in Gurgaon-NCR has seen an increase of 10 percent in capital values.

Moreover, capital values for mid segment properties in areas like North and South-west Bangalore have seen an increase of 13 percent and 10 percent respectively. In Mumbai, areas like Powai witnessed an appreciation of 12 percent in the second quarter of 2012.