Chennai: New Residential Launches Decline by 39% in 2013


New Residential Launches

Decline..

Chennai           - 39%
 NCR                - 33%
 Pune                 - 20%
Ahmedabad     - 5%.
Over all Drop   - 12 %

Up...

Bengaluru 15%.
Mumbai 6%
Kolkata 3%

In the latest report from international property consultants Cushman & Wakefield (C & W), there has been a drop of 12 % in new residential project launches in 2013 as over last year.


The total estimated unit launches were recorded at 172,500 units across major eight cities of India with Bengaluru recording the largest number of units launched recording a rise 15%.

Chennai on the other hand saw the sharpest decline in launches of new residential units which represented a drop of 39% over last year.

Mumbai (6 %) and Kolkata (3 %) also saw a rise in the total units launched in 2013 over last year. However, NCR (-33%), Pune (-20%) and Ahmedabad (-5%) recorded a decline.

Mumbai & Delhi together constituted over 65 % of the total launches.


Mr. Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, says, “In the current economic scenario both buyers and developers are taking a cautious approach not only towards residential real estate but across all asset classes of real estate. However, given that most aspects of development such as construction cost, development cost, cost of land, time taken for approval and cost of debt all have been on an upward tangent developers have not been able to lower cost. Thus many developers took to innovative marketing and pricing strategies to ensure better responses such as in the 20:80 scheme was recently discontinued following RBI’s recent announcement.”
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