Real Estate: South India are More Conscious, Conservative Market & End-user related, Resulting in Better Terms & Timings of Delivery...

According to Propequity, a real estate research company. housing launches till July this year (2013) fell by 38 to 59% compared with the same period last year, across key markets such as Gurgaon, Navi Mumbai, Pune, Noida and Kolkata. Bangalore is the only city to have bucked the downward trend and reported a rise of 31.2%, launching 36,669 units until July, 2013 up from 27,950 in the year-ago period.

In North India, Noida had the steepest fall — 59.5%. Only 5,994 units were launched here during the period compared with 14,797 a year ago.

 Gurgaon too saw 38 % lower launches at 11,955, compared with 19,310 in the a year ago.

The west and the east saw a similar trend. Launches in Navi Mumbai were down 40.3 %, Pune 46.6 % and Kolkata over 41 %.

According to data by PropEquity, launches across 15 major cities in India were down 15.8% to 188,145 units in all segments until July 2013

. While some industry watchers say this divergence in trends in the North &  South is because buyers in the South are more conscious and end-user related, resulting in better terms and timings of delivery.

Others peg this to too many launches in the North, which already has an excess supply of inventory.

 The National Capital Region (NCR) has become notorious for its much delayed projects.

Ms. Shweta Jain, Executive director, Residential services, Cushman and Wakefield, told the BS, “The south is a conservative market, in fact a conscious one as compared to National Capital Region and Mumbai.

” In BS report, Samir Jasuja, Founder and CEO, PropEquity says the reasons for the decline in launches are uncertainty in the economy & laggard sales. “

…Many developers / promoters have deferred launches to manage the demand-supply mismatch,” Jasuja has been quoted as saying in the report.

Delayed delivery of aprtments are a major issue in the National Capital Region (NCR).

Builder-buyer litigations and consumer agitations are on the rise in the region due to this.

Gurgaon, saw only only one-third of the total committed supply for 2013 delivered, with Noida seeing a dismal supply of only one-fifth of its committed 2013 supply being delivered.

While the West, Pune & Mumbai, have fared better in terms of project completions and could deliver above 40 % of the committed supply of 2013 as per scheduled delivery, pan-India above 25% of the committed supply has been delayed.

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