NCR witness 39% downfall in new project launches
National Capital Region’s property market witness a downfall of 39 % for the new launches of apartments in the areas. As suggested by various reports that around 7,600 units are left over since January-March period.
Major eight cities like NCR, Chennai, Kolkata, Bangalore, Mumbai, Hyderabad, Pune and Ahmedabad launched around 38,000 residential units in the first quarter of 2013, reported that there is a marginal fall of about 2 percent over the previous quarter.
Among all the cities, NCR have witnessed approximately a downfall of 7600 units when compared with the previous quarter. Maximum projects in Noida and Gurgaon is based on mid segment, moreover there are many sectors which was either barren land or villages which have turned into proper residential sector due to the demand of the investors.
In Noida supply became more comparative to the demand of the area, hence Noida witnessed a steep decline in new launches at close to 70 percent and ended up being the primary contributor for the overall decline in number of launches in the NCR.
According to the reports, Chennai, Mumbai, Hyderabad and Ahmedabad also witnessed downfall for new launches of residential units by 39%, 3%, 89% and 62% respectively. Although looking at cities like Bangalore and Pune new residential units launched are more than double in the last quarter. Duo cities have witnessed upward rise by 144 percent and 109 percent, respectively, resulting a rise of 5 %.
Most location in Delhi saw stable capital values in both mid and high-end segments. However, capital values in high-end segment in South Central Delhi witnessed 15 percent appreciation over last year due to limited supply and high demand.
According to surveys areas in Gurgaon saw the maximum downfall. Gurgaon was location which saw a higher appreciation due to the demand from both end-users and investors, now the proportion of investment in real estate sector has decreased due less competitive projects present in the location. Moreover Gurgaon saw a change in the capital values in the luxury/high-end and mid-end residential segment at 29 percent and 18 percent respectively over last year.
Indian’s residential market will soon witness few vibrant launches during quarter despite the sluggish economic environment. Looking at the aspect and stability in Indian real estate market, it is expected that the prices will remain largely stable in the coming months as developers will be looking mainly to boost sale and increase cash flows in projects being currently executed.
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Very True , whole Delhi -NCR region is witnessing sings of recession and due to which builder are holding back new launches. Layoffs and recession can trigger major downfall for real estate market.