Housing launches drop up to 59 per cent in key markets; IT hub Bangalore only exception

After a huge inventory pile-up and delivery setbacks, the numbers for housing launches appear bleak, too, thus firmly establishing the real estate gloom story. Launches till July this year fell by 38 to 59 per cent across key markets such as Gurgaon, Navi Mumbai, Pune, Noida and Kolkata, compared with the same period last year. Bangalore has bucked the overall downtrend by reporting a rise in launches.

The highest drop, of 59.5 per cent, was seen in Noida, with only 5,994 units launched till July this year, down from 14,797 in the same period of 2012. In Gurgaon, launches dipped 38 per cent to 11,955 till July, from 19,310 in the corresponding period of 2012.

Similarly, launches were down 40.3 per cent in Navi Mumbai, 46.6 per cent in Pune and 41.6 per cent in Kolkata, according to data by real estate research firm PropEquity (see chart). Overall, launches across India in 15 major cities were down 15.8 per cent to 188,145 units in all segments till July this year.

Contrary to the overall trend, 36,669 units were launched in Bangalore till July, up from 27,950 in the same period last year, a rise of 31.2 per cent. Whitefield in Bangalore continues to be a highly growing market with luxury and mid-end apartments, along with high-end malls and hotels. “The south is a conservative market, in fact a conscious one as compared to National Capital Region and Mumbai,” says Shweta Jain, executive director, residential services, Cushman and Wakefield. This is the reason why developers have a good track record in terms of delivery as well as launches in the south, she says.

“Bangalore continues to be a big IT destination and attracts MNCs. Also, demand for homes from first-time buyers is always there.”

For more visit: Business Standard

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