As many as 19,000 residential units were launched in top six cities during January-March period, with the megapolis Mumbai witnessing the highest number of
launches, a study said. According to a Colliers International study, amidst cautious sentiment, nearly 19,000 units were launched in top six cities including Mumbai, Bengaluru, Pune, Gurgaon, Noida and Chennai. Maximum launches were concentrated in Mumbai – nearly 6,500, followed by Bengaluru (6,000) and Pune (2,200). While 1,100 units were launched in Chennai, there was a marginal
improvement in the launches in Noida and Gurgaon.
“While developers across all major cities steered clear of inundating the primary residential segment with too many new products, recovering market confidence prompted them to lure buyers with cash discounts and freebies,” senior associate director, Research, Surabhi Arora said. “What we need to resurrect the residential market now, is an affordable product with basic amenities, at the right price point. We are witnessing steady enquiries, mainly in the affordable and mid-segment which is a good sign,” Arora said.
The report pointed out that capital and rental values are expected to be rationalised in the near-term as residential markets across all major cities witness the developers’ focus on clearing unsold inventory. “Falling interest rates coupled with the introduction of the Real Estate (Regulation and Development) Act, 2016, are expected to stimulate end-user demand and lead to market recovery. However, it will take some time to bring back fence sitting investors into the market again. Thus, in the short-term we are expecting capital values to remain stable,” Arora added.