Property launches fall across cities: Survey

Mumbai: Residential property launches across major cities fell by nearly 44% to 17,500 units in the second quarter of 2012 by organized developers like Hubtown and Ajmeras due to delay in approvals, significant inventory in certain locations as well as postponement of projects to coincide new launches in the festival season, says Cushman & Wakefield, global property consultants. 

    Mumbai recorded launch of only 9 projects totalling 1,200 units, significantly lower than 4,400 units in the previous quarter between April and June, 2012. The new projects were mainly concentrated in the peripheral locations with a few located in Andheri and Goregaon and they were launched at higher prices. Capital values remained stable across all micro markets barring those in north, far north and north-east. This was mainly due to the low availability of quality options in these areas. 
    Of the 17,500 units launched, 70% catered to the mid-segment as it continues to see maximum demand from end users and investors. The financial capital of India saw the sharpest fall of over 200% in new launches, followed by Chennai at 47%, Kolkata at 29% and NCR and New Delhi at 24% respectively. However, Pune market saw the highest number of launches in the second quarter at 6600 units, accounting for nearly 37% of the total new supply. 
    Shveta Jain, director (residential services), Cushman & Wakefield India, said, "The stipulations in the new DCR to charge a premium for the additional FSI and allocation of 20% area for the lower income groups will require the developers to revisit and revise their plans.''