New home launches decline 16% in top 8 cities
About 1.62 lakh housing units were launched last year in India's eight major cities -- a drop of 16 percent from 2011, global property consultant Cushman & Wakefield said Wednesday.
New Delhi: About 1.62 lakh housing units were launched last year in India's eight major cities -- a drop of 16 percent from 2011, global property consultant Cushman & Wakefield said Wednesday.
The cities tracked by the consultant are NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad.
"Residential market across major cities in India witnessed a drop in total number of units launched by approximately 16 percent over previous year. 2012 recorded launch of about 1,62,000 new units of residential properties across the eight major cities," the report said.
A majority the units were launched in the mid-segment comprising about 83 percent of total launches, it added.
NCR, Chennai, Bengaluru, Hyderabad and Ahmedabad witnessed decline in home launches compared with 2011, but Mumbai, Pune and Kolkata reversed the trend with higher launches.
NCR saw maximum launches of new homes at nearly 54,500 units in 2012, followed by Pune (24,000 new units), Mumbai (22,500 units) and Chennai (20,800 units).
"In 2012, the residential market saw proactive and innovative marketing and new launches of specialist projects on one side but restrained activities in terms of large scale development as most developers were cautious not to overestimate the end user demand market," C&W Executive Managing Director (South Asia) Sanjay Dutt said.
High inflation as well as home loan interest rates and slow economic growth had a strong impact on the end users making them more price sensitive than previously experienced, he said.
Dutt noted that cash-strapped developers were not willing to take up projects that could fall short in interest from end users, keeping their risk exposure to the minimum.
"Investor activities however have been strong in the residential market, with many viewing this as the right time to enter the market with the much needed capital for developers. This has been the primary reason why most markets across categories experienced a rise in values," he said.