Due to delay in approvals, project postpone: Chennai's residential projects launches down by 67%


According to global real estate consultancy, Cushman & Wakefield (C&W), residential property launches across major cities in India fell by nearly 44 per cent to 17,500 units in the second quarter of 2012, due to delay in approvals, significant inventory in certain locations as well as postponement of project to coincide new launches with the festival season.

Mr. Shveta Jain, Director, Residential Services Cushman & Wakefield India, said, "Going forward, we anticipate an improvement in the economic scenario will provide the much needed impetus to boost the demand. Values are expected to remain stable in the short term and the developers may also offer attractive options & incentives to attract buyers during the festive season"

Highlights of C & W Report...!

^ Of the 17,500 units launched 70 per cent catered to the mid segment as it continues to see maximum demand from end users and investors.

^ The financial capital of India, Mumbai saw the sharpest fall of 73 % in new residential property launches, followed by Bangalore, Chennai at 67% &  47% respectively.

^ Other cities including Kolkata & NCR-New Delhi saw new residential property launches fall by 29% & 24%.

^ Pune and Hyderabad saw increase in new launches in the second quarter.

^ As per C & W, the residential sector witnessed steady demand across almost all the major cities with capital values in majority of the micro markets remaining stable across high end & mid end segment properties during the quarter.

^ India's luxury housing segment continued to witness demand with a few high value transactions being concluded in cities like Mumbai and NCR. Some of the prominent micro markets that recorded appreciation include Gurgaon - NCR, in which the luxury segment witnessed a rise of 10 per cent in capital values.

^ Capital values of mid segment properties in areas like North & South - west Bangalore recorded an increase of 13% & 10% respectively; Powai in Mumbai saw an appreciation of 12 per cet in june quater (2Q) 2012.

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