35% Dip In New Home Launch, Low Cost Home Supply Up In 2017
New home launch are estimated to have fallen to 73,956 units in 2017 from 1,13,044 units last year in eight cities NCR, Mumbai, Chennai, Kolkata, Bengaluru, Ahmedabad, Pune and Hyderabad.
Realty sector witnessed 35 percent fall in new home launch during 2017 across eight major cities to about 74,000 units, but launches of low-cost homes rose by six percent, according to Cushman & Wakefield.
All eight cities recorded decline in new home launch in the range of 8 percent to 52 percent, mainly on account of implementation of real estate regulatory law RERA under which all ongoing and new projects have to be registered with the authority.
With only the affordable housing segment seeing a rise in launches in 2017, the new home launch in residential saw a decline of 35 percent year on year since 2016, Cushman & Wakefield said in a report.
Home launches fell maximum in Ahmedabad by 52 per cent at 4,680 units during 2017, followed by Hyderabad by 51 percent to 5,837 units, Bengaluru by 47 percent to 9,219 units and Kolkata by 45 percent to 7,127 units.
Chennai saw a dip of 44 per cent to 3,595 units during 2017, while Pune witnessed a decline of 43 per cent to 10,730 units and Delhi-NCR by 14 percent to 9,792 units. Home launches fell only by 8 per cent in Mumbai at 22,976 units as Maharashtra timely established the state regulator. Commenting on the report, C&W India Country Head and MD said: 2017 is a precursor to the much-needed stability of the residential market as seen in the nature of launches.
In the residential sector, affordable housing saw a growth of 6 percent at 31,241 units, with Mumbai leading the trend.
Even as developers grappled with the impacts of business fundamentals like RERA and the GST over their business, the clarity brought in by government in affordable housing definition and benefits led to this growth, C&W said. Mumbai contributed the highest to affordable category, recording over 11,000 new units. Pune with the launch of 5,700 units saw second highest numbers.
Luxury segment posted 70 percent fall in launches to 331 units, while high-end by 57 percent to 4,943 units and mid-range by 47 percent to 37,441 units. The end users’ interest in the residential sector will become positive as investments will be legally protected and there would be commitment on timely delivery from developers.
Source Link- http://www.news18.com/