Delhi-NCR observes 8% fall in new home launches
Due to the economic slowdown, the real estate market of Delhi-NCR has recorded an 8 percent decline in the number of new housing units launched in the first two quarters of the current calendar year, reports property consultant Cushman & Wakefield. The drop in launches was higher in case of high-end and luxury residential projects.
Drop in new launches
The firm has stated that the property market of the NCR has registered a decline in the total number of newly launched residential units in the first half of the year when compared to the same period of the previous year. It has been estimated that around 20,700 housing units were launched between Jan 2013-June 2013, which is 8 percent less compared to the number of units launched during Jan 2012-June 2012 period.
No new launch in luxury segment
In the high-end segment, the total number of units launched in the first half of the present year was 70 percent less than those launched in the equivalent period last year. No new project was launched in the luxury realty segment during the first half of 2013 owing to the prevalent oversupply of new luxury units in the market which are already nearing completion.
Sluggish market and slow completion of projects
Since the residential sector is being cyclical in nature, it is witnessing a phase wherein only few projects are close to completion and this is making the investors to exit, explained Shveta Jain, C&W Executive Director Residential Services. The properties in the secondary market (resale properties) are offered at much lower prices than the new launches in the primary market. This availability of properties at lower prices has made the developers thoughtful of adding more inventories in the backdrop of slow economy, she added.
Gurgaon records decrease in capital values
The capital values of ready-to-move-in properties in Gurgaon have come down by nearly 9 percent quarter on quarter in the luxury market as there are too many available in the segment currently.
High-end markets witness price hike
Top luxury micro markets such as South-Central and Central Delhi have recorded a price hike of 7-15 percent over the previous year. Even though there was no rise in demand seen in these areas over the last couple of months, the property prices continued to be stable compared to the last quarter.
Influence of buyer market sentiment
Owing to the prevalent market sentiments, the C&W report states that South-West and South-East Delhi observed a fall in capital values over the year as well as the previous quarter.
In the meantime, the report also said that the number of residential units launched in the first half of the year summed to about 88,177 in the eight major cities of India, which is up by 11 percent over the period of last year.
Mid-segment holds maximum launches
The mid-end segment housing continued to constitute a majority (58 percent) of the total units launched during H1 2013. The cities which have recorded a drop in new project launches in H1 2013 compared to the same period last year include Ahmedabad, Chennai, NCR and Pune.
