MUMBAI: Residential property launches across major cities fell by nearly 44% to 17,500 units in the second quarter of 2012 by organized developers like Hubtown and Ajmeras due to delay in approvals, %significant inventory in certain locations as well as postponement of projects to coincide new launches in the festival season, says Cushman & Wakefield, global property consultants.
Mumbai recorded launch of only 9 projects totalling 1,200 units, significantly lower than 4,400 units in the previous quarter between April and June, 2012. The new projects were mainly concentrated in the peripheral locations with a few located in Andheri and Goregaon and they were launched at higher prices. Capital values remained stable across all micro markets barring those in north, far north and north-east. This was mainly due to the low availability of quality options in these areas. See box
Of the 17,500 units launched, 70% catered to the mid-segment as it continues to see maximum demand from end users and investors. The financial capital of India saw the sharpest fall of over 200% in new launches, followed by Chennai at 47%, Kolkata at 29% and NCR and New Delhi at 24% respectively. However, Pune market saw the highest number of launches in the second quarter at 6600 units, accounting for nearly 37% of the total new supply.
Shveta Jain, director (residential services), Cushman & Wakefield India, said, “The stipulations in the new DCR to charge a premium for the additional FSI and allocation of 20% area for the lower income groups will require the developers to revisit and revise their plans.”