MUMBAI: Number of residential project launches in July-September quarter rose 20% from a year ago across top six property markets in India. Housing project launches in Mumbai, Bengaluru, Chennai, Pune, Noida and Gurgaon were a little less than 25,000 units making it about 67,000 so far for the year 2016, showed a Colliers International India report.
Residential market in the western India recorded maximum number of launches in Mumbai and Pune with 28% and 23% share of the total unit launches during the quarter, respectively. This was followed by Bengaluru at 17%, Noida 16%, Chennai 9% and Gurgaon 7%. After almost three quarters, the Gurgaon and Noida residential markets have witnessed several new launches during the quarter in the wake of upcoming festive season, the report said.
“The residential market appears to be coming out of the cycle of “low confidence, low investment”. Several factors such as the strong office market that indicate robust employment scenario, the festive season and lowering interest rates are likely to support housing market in coming months. We expect residential market to witness growth in most cities,” said Surabhi Arora, Senior Associate Director, Colliers International India.
During the ongoing festive season, developers have continued to offer discounts, flexible payment plans and other incentives such as free parking and gold coins to promote sales. Although buyers have maintained a cautious approach, enquiries have increased amidst improved sentiments owing to RERA and the festive season. However, buyer interest remained towards affordable and mid-end housing projects and we expect the trend to continue in subsequent quarters as well, she added.
The Mumbai residential market witnessed improved sentiments and increase in the number of new unit launches during the quarter. A quarter-on-quarter (QOQ) increase of around 70% was observed with a little less than 7,000 units launched, increasing the total number of units to 17,300 for 2016 so far.
High end and luxury residential developments constituted almost 70% of the unit launches in suburban Mumbai. Mid end developments mostly prevailed in Navi Mumbai where homes are comparatively affordable. Almost 50-60% of the resale inventory in South Mumbai remains unsold this quarter despite the decrease in sale prices.
