MUMBAI: There has been a drop of 12% in new residential project launches in 2013 as over last year, a latest report from international property consultants Cushman & Wakefield says. 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 and Delhi together constituted over 65% of the total launches.
Executive Managing Director, South Asia, Cushman & Wakefield Sanjay Dutt 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."
The high end category residential units have seen a tremendous rise of over 50% in 2013 even while the largest quantum of launches in residential units was in the mid end category, there was decline of 13% in the total launches of residential units in the mid end category over previous year. There was a sharp drop in the launches of luxury units which declined to only 1100 units with largest number of units being launched in Bengaluru.