MUMBAI: The city witnessed nearly 4,000 unit launches during the first quarter of 2015, registering a decline of 63% from the same period last year, said a Cushman & Wakefield report released on Thursday.
It contributed 16% to the total unit launches across top eight cities during the quarter. "Due to subdued demand, developers refrained from launching new projects and focused on executing under-construction projects. Moreover, they have also held back to capitalize on the expected changes as per the proposed Development Plan 2034 for Mumbai. Around 92% of units launched in the first quarter of 2015 were in the eastern suburbs,'' said the report.
Many new project launches were between Kanjurmarg and Mulund where erstwhile industrial land is being redeveloped. "End-user demand remains high in the eastern suburbs due to presence of good social and physical infrastructure. Mid and high-end segment contributed 49% and 51% respectively to total unit launches during the quarter,'' it said.
Due to launch of a premium project with large unit sizes in Mulund, 3 BHK units dominated launches this quarter with a 53% share, followed by 2 BHKs with a 24% share. Although the number of projects launched in this quarter declined by 71% from the previous year, the average number of units launched per project increased by 27%, from 446 in the first quarter of 2014 to 567 in the current quarter. Due to stable demand, average y-o-y quoted capital values increased by 3-8% across all segments of Western Suburbs submarket. With an aim to increase sales velocity, a few developers offered subvention schemes and low down payment options in this quarter, whilst some partnered with financial institutions to offer lower interest rates for a fixed period.
The January-March 2015 period saw the lowest number of project launches in the country over a period of two years. With a total residential launch of 24,700 units, the decline was recorded to be over 50% year -on - year (y-o-y) over same time last year, said the report.