Hyd is stable while major cities dip in launching new homes

The number of new home launches declined by 21 per cent to 34,600 units during July-September period in eight major cities - with Ahmedabad witnessing the maximum drop, while the growth rate in the city remained stable, says a report by Cushman and Wakefield.

Apart from Hyderabad, launches of new homes increased in Kolkata, Pune and Chennai.

“Kolkata saw a significant rise in the new launches in the quarter over same time last year. With 2,300 unit launches, market activity improved by around 28 per cent from the previous year,” C&W said, adding that Pune also experienced a growth in total units launched of about 18 per cent due to festive season demand. New home launches increased by seven per cent and five per cent in Chennai and Hyderabad, respectively.

During the third quarter of 2014, 166 new housing projects were launched across eight cities, with Chennai recording the highest with 45 projects and Ahmedabad reporting the lowest number of new launches of 5 projects.

“Unit launches decreased as developers focused on completing existing projects and delayed new launches awaiting an increase in demand,” states a report.

City-wise, Ahmedabad witnessed the maximum fall of 62 per cent. Only 800 housing units were launched during July-September 2014 as against 2,100 units the previous year. After Ahmedabad, Delhi-NCR saw a decline of 54 per cent of about 4,500 units as compared to 9,700 units the same time last year. Bengaluru saw a fall of 27 per cent and Mumbai 11 per cent.

Commenting on the report, C&W India executive director (residential services) Shveta Jain said, “Supply outstrips demand in most of these cities due to weak market sentiments and slower growth rate in sales due to which new launches have remained checked.”