Launching prices of mid segment flats drop by 4-20% in key metro markets

Q: Good news for home-buyers. Launching prices for mid-segment new residential projects witnessed 4-20% drop in 2015 in select micro markets of Mumbai, NCR and Bengaluru.

Praveen Modi, Mumbai

6th January 2016

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As per a report, the submarket of Malad witnessed ticket size reduction by 15% in spite of average launch prices (mid segment) declining by only 8% primarily due to significantly reduced average unit sizes. Thane and Goregaon witnessed a decline in Average Weighted Basic Sale Price by 18% - 20% as well as reduced ticket size of new projects in 2015 compared to 2013.

Diwakar Shetty,

6th January 2016

Comment

It is good for the end-users. A correction of the launch prices will make sure attractiveness and ability of these locations to the end users. The economic confidence slowly slipping back into end user sentiments helped by a corrected Base Price as well as lowered ticket size is likely to provide the needed boost to improve sales.

Girish Gupta, Bangalore

6th January 2016

Comment

With reducing number of new launches between a drop in buyer's interest, Delhi-NCR witnessed new unit launches sum around 23000 units in 2015, about 79% of the units were launched in the locations of Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR. Half of the total new launches in 2015 were in the mid segment at approximately 12400 unit.

Rishi Dev,

6th January 2016

While Mumbai witnessed a 37% decline in residential unit launches to 15735 units, from the corresponding period last year with Mulund, Thane, Goregaon and Malad accounting for nearly 51% of total launches during 2015.

Praveen Modi, Mumbai

6th January 2016

As a resuly, the new launches in 2015 have been smaller in configuration therefore with reduced base selling prices and smaller units, the ticket size has also seen a decline in these key markets.

Rishi Dev,

6th January 2016

And the biggest decline of 20% in average weighted basic sale price was registered in Goregaon suburb of Mumbai where the per square foot rate averaged at Rs 10500 in 2015. Goregaon was followed by Thane that saw 18% decline in launch prices.

Dhiraj,

6th January 2016

Comment

Hi Dhiraj,
While Southern Peripheral Road in NCR's Gurgaon also saw a decline of 10% in average base selling price of new launch projects compared to 2013.

In contrast, most of the submarkets in Bengaluru witnessed fixed launch prices except in Far South and Western submarkets where average new launch prices in 2015 declined by 2-7% compared to 2013. South East micro market of Bangalore was an exception to the rule where both the Average Weighted Basic Sale Price (19%) and the Average Ticket Size (18%) of apartment saw an increase.

Murali Krishnan, Bangalore

6th January 2016