Realty launches drop 55 % in Jan-Mar and smallest in 2 yrs.

Q: Hey, what is the total no of project launches in Jan-Mar ? What was the reason of fall in percentage?

Diwakar Shetty,

27th April 2015

Real estate News in Mumbai

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Replies (2)

@Shalini,
Constant increase in input costs including cost of statutory approvals from the state government, land and land development cost were also the reason for dip in the new launches. Moreover, while the market sentiments are positive and the inquiries have elevated, change of interest to sale is low.

Abhijit Thanki, Mumbai

27th April 2015

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@Abhijit,
What is the percentage of drop in launches in Mumbai? And what was the percentage of new launches across top eight cities?

Suresh,

27th April 2015

Hi Suresh,
Mumbai observed a 63% drop in launches at nearly 4000 units during the quarter, with the most costly property market in the country adding 16% to total unit launches across top 8 cities. The city saw as many as 92% of the units launched during the quarter in the eastern suburbs.

Abhijit Thanki, Mumbai

27th April 2015

Hi Diwakar,

Very few real estate projects were launched in India's top 8 markets in the quarter to March than in any other three-month period in the past 2 years. The total number of project launches during the quarter fell to 24700 units, down by 55% compared to the year-ago period. It is expected that the developers stop due to the slowness in housing sales.

Shalini Parikh, Mumbai

27th April 2015

Comment

Hello Shalini,
Do you think there would be any strong reason for that? Which are the cities where there is a drop in realty launches?

Suresh,

27th April 2015

Yes, there were very strong reason for discontinue in the project launches in few cities. In a few markets, developers also stopped from launching new projects as they awaited new development plans for the cities. In Mumbai, for example, the industry is waiting for the proposed Development Plan 2034. Hyderabad bucked the trend with a 200% jump in launches while all other markets such as Mumbai, Delhi-NCR Bengaluru, Pune and Chennai seen a drop.

Shalini Parikh, Mumbai

27th April 2015