MUMBAI: Mumbai witnessed the launch of nearly 18,000 housing units between January and June, an increase of 30% compared to the same period in 2012, said a quarterly report by global property consultants Cushman and Wakefield.
Thirty per cent of the new launches were in Andheri, Bandra, Malad and Goregaon followed by Navi Mumbai and central suburbs like Mulund and Chembur. Thane did not have many new launches.
The report said that submarkets of south, south central and western suburbs witnessed substantial rise in capital values in the range of 17-24% over the past year due to less availability of quality ready flats. Most high-end projects in these areas are under construction. Capital values rose by 3-6% for the mid and high-end segment in central, western suburbs, Thane and Navi Mumbai.
Said Shveta Jain, executive director, residential services, Cushman & Wakefield, “Despite sluggish demand, many new launches are aimed at the high-end segment. This is because of high land and development costs for which developers have chosen to go for higher ticket size projects though the demand is more for affordable and mid-end segments. The subdued sales activity has developers reducing flat size than reducing prices.”
Developers tried to reduce ticket size by offering smaller configurations, especially in south Mumbai. This helped reduce ticket size by up to 20-25% and increase sales velocity.
Pan India Trends
An estimated 47,000 residential units were launched by organized developers in the second quarter of 2013 in major cities, registering an increase of approximately 14% over the previous quarter.The unit launches for the first half of the year totalled to approximately 88,177, representing an increase of 11% over the period last year. The mid-end segment continued to constitute majority (58%) of the overall launches between January and June 2013.