Sharp Decline in new launches of affordable housing segments across major cities
The real estate market of India has witnessed a sharp decline in the overall launch of residential properties, especially in the major cities. The number of residential projects launched in July-Sep 2014 is approximately 21 per cent as compared to the same quarter last year.
The research done by the Global real estate consultancy Cushman & Wakefield reveals the following data-
- 166 project launches in top 8 cities of India in the 3rsd quarter of 2014.
- The affordable housing launch has witnessed 50% drop as against the same time last year
- Ahmedabad recorded the lowest number of just 5 residential project launches, where as Chennai recorded the highest with 45 new residential units.
- The affordable segment of the real estate has got the maximum hit in the decrease in project launches.
Although the demand in the affordable segment is the highest, it is believed that the launches are fewer due to the developers preferring to opt for large scale residential projects. Moreover, with the increase in the input costs, it is getting difficult for the developers to offer affordable homes within the city perimeter.
The good thing is that the market prices remain stable due to the continuous efforts of the developers. They are making fewer projects that are relatively smaller in size but are delivered to the customers on time. This has also helped in keeping the market sentiment positive.
Real estate developers are constantly facing roadblocks of high costs and dearth of land within the city limits, thus forcing them to make restricted launches. Cities that are expanding geographically such as Pune and Kolkata have witnessed a significant rise in the new project launches. Pune experienced a spurt of about 18% in total residential units launched in Q3 2014 around the same time last year. Many projects in their pre-launch stages also were announced due to an escalation in demand during the festive season in these cities.
Source: the Hindu
Affordable housing segments, Cushman & Wakefield, Global real estate consultancy, real estate market of India
