New home launches in major cities of India have dropped by 16%. Tracking the top eight cities of India, global property consultant Cushman & Wakefield reports.
In 2012 nearly 1,62,000 housing units were launched in top 8 cities of India including Mumbai, Hyderabad, Bangalore, Delhi, Chennai, Kolkata, Pune, and Ahmedabad. 2012’s new home launches are down by 16% compared to the numbers of previous year.
The lower number of home launches shows that the residential market across India is down. Besides the downfall of new home launches, mid- income housing segment has revived as around 83 % of the total home launches are in this segment.
New launches dropped highly in Hyderabad, Bangalore, Delhi, Chennai and Ahmedabad. These cities witnessed a steep fall of new home launches. On the other hand the remaining cities like Pune, Kolkata and Mumbai had improved new home launches.
With 54,500 new launches, National Capital Region (NCR) stood the top of the list. Pune stood second with 24,000 new launches. Mumbai and Chennai, with 22,500 and 20,800 new home launches, stood third and fourth places respectively.
Cushman & Wakefield’s South Asia Executive Managing Director, Mr. Sanjay Dutt said that the realty builders too remained highly cautious about the lull residential market. They withdrew them from bigger residential development due to the lull nature of residential market. However Mr. Dutt said that the year 2012 witnessed some innovative marketing- methods.
According to Mr. Dutt, the lull residential market was the result of slow economic growth and inflation. Due to the increased interest rate, the buyers have become more price- sensitive and this made a worse situation.
To avoid further risks, the crises- stricken builders kept them aloof from developing any residential projects. However there was an increase in the number of property investors who found the money crises of the builders as the best time to enter into the market.