Global
Real Estate Consultants, Cushman & Wakefield (C & W), in their latest
report stated that top eight cities witnessed total estimated residential unit
launches of 1,32,000 units between January
to September 2013 which represented an increase of 5 % as compared the
to the same period for 2012.
High
end property launches in the first 3 quarters of 2013, which was recorded at
23,500 units, saw the highest growth of 142 % over same time last year (2013),
while launches in the luxury housing category recorded a decline of 10.5 % between January to September 2013 over same
period last year.
The
residential market has been witnessing stagnant trends in the capital values as
well through most micro markets as through across major cities on account of
restrained activities.
Mr.
Shveta Jain, Executive Director, Residential Services, Cushman & Wakefield
said “Contrary to tradition, there has been a decline in new launch activities
in Q3 2013 as economic conditions have not been encouraging for developers.
Slowed down in demand with consumer confidence at lower ebb on account of
increased and consistently high pricing in key cities. Having said that, the
demand from first time buyers and end users has been consistent as genuine
buyers with adequate capital look at this phase as ideal to enter the property
market on account of stable capital values.”
Mr.
Shveta Jain continues further, “Most developers /promoters are focused on
keeping the levels of unsold inventories low, thus to promote sales, developers
are resolving to innovating marketing to ensure buyers can get more value from
their product. Their problems are compounded on account of higher input cost,
thereby keeping capital values consistent. Developers are looking at alternate
strategies from promotional offers to resizing of units in order to meet the
end consumer demand of economically viable housing. Developers have reduced
their concentration on low demand category of luxury and on affordable housing
which has high input costs.”
Ahmedabad,
Bengaluru & Chennai witnessed a quarter on quarter increase of 41 %, 25 %
and 28 % respectively in Q3. Though Hyderabad witnessed the maximum decline of
56 % in launches compared to Q2 2013, it however witnessed one of the highest
rises in y-o-y appreciation.
Number
of launches in 2013 more than tripled in Bengaluru to nearly 35,000 units till
September, 2013. Bengaluru, NCR and Mumbai, respectively contributed to 27 %,
23 % and 19 % of the launches across top eight cities in 2013.
Rental
remained stable across most of the cities except Ahmedabad which registered 4 %
to 10 % decline in rentals across segments. Gurgaon in NCR also registered a 4%
to12 % dip in rental values for high-end spaces.
Bengaluru
witnessed maximum appreciation of 4% to 12 % q - o - q across a few submarkets
in mid-end segment capital values due to persistent demand from working
population.
Kolkata
witnessed a 5% to 7 % appreciation in capital values of prime areas, due to
growing demand for high-end projects in these locations.
Capital
values across segments in Chennai, Hyderabad and Pune remained stable during
the quarter due to sluggish sales, subdued demand and rising construction
costs. High-end segment capital values in locations such as Lower Parel, Worli
in South Central Mumbai declined by 2 %, while in Gurgaon, NCR fell by 3% to 5
% to boost demand and push transaction activity in an oversupply scenario.
Ahmedabad
witnessed maximum price correction of 4% to 8 % across majority of the markets
for both mid-end and high-end segments in Q3.
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