Average price of new residential units declines 14% in 2016: Cushman & Wakefield

With developers focusing on reducing the cost of housing units to increase sales, the average price of new residential units that were launched in 2016 in the top eight cities of India, has dropped by 14%, as compared to the previous year, says a report by Cushman & Wakefield

The ticket size of new launches across the top eight cities of India (Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune), witnessed an average decline of 14% year-on-year (y-o-y), according to a report by Cushman & Wakefield.

This was a consequence of many developers recalibrating their market strategies that involved reducing the effective cost of their property and restricting new launches in order to reduce their inventory holding.

In most of the cities, developers sought to rationalise ticket sizes, especially in the high-end and luxury segments, which have been hit the most.

The total number of new housing units also declined during the year by 11%, to approximately 1,13,000 units. Of this, the mid-segment housing accounted for 56% of the total units launched, followed by the value housing segment (32%). On a y-o-y basis, launches in the value housing segment increased by 22%, to more than 36,300 units.

In the high-end segment, on the other hand, launches almost halved to 12,000 units during the year.


Segment-wise launch of residential units

2015 2016 % change
Value housing 29,800 36,300 22%
Mid 71,500 63,050 -12%
High-end 24,650 12,650 -49%
Luxury 800 1,100 42%
Total 126,700 113,100 -11%


  • Figures rounded off to the nearest multiple of 50.
  • Value housing are units typically priced in the range of Rs 20-50 lakhs.
  • Values for mid-segment are for units in the range of Rs 50 lakhs-1 crore, except Delhi-NCR and Mumbai, where the range in mid-segment housing is typically between Rs 50 lakhs-1.7 crores (Rs 2 crores for Mumbai).
  • High-end segment values are for units typically priced above Rs 1 crore, except for Delhi and Mumbai (where it is more than Rs 1.7 crores in Delhi and Rs 2 crores for Mumbai).

See also: Q3 2016: Apartment sales outdo new launches for the first time, since 2008

Commenting on the numbers, Anshul Jain, managing director – India, Cushman & Wakefield, said: “Post demonetisation, the markets have witnessed a slow uptake of residential properties, on account of price and value mismatch. Consequently, developers are also reworking their strategies, to create better value for home buyers.

“The clarity on affordable housing’s definition, provided by the government in this year’s union budget, along with the benefits accruing from the infrastructure status to affordable housing projects, should bring a spurt in new launches in the later part of the year, although these are most likely to be in suburban and peripheral locations. In terms of projects that have already been launched and where units remain unsold, developers are offering discounts and schemes to decrease their inventory and these schemes will continue for a while, till the markets find a balance.

“Further, the ticket values of new units being launched may see some change this year, as many developers are working on lowering these, to increase the affordability of their units, by either offering attractive prices or smaller units. This, along with reduced bank loan rates, are expected to create some velocity in sales, by the end of 2017 and going into the next year.”


City-specific details and trends



The average ticket size in the mid-segment fell by 14% to Rs 1.12 crores, as developers focused more on offering apartments of smaller sizes, as well as launching projects at marginally lower prices.

The average size of newly-launched units in 2016 in Mumbai, reduced by 10% to approximately to 960 sq ft. Further, developers launched mid-segment projects in the western suburbs of Malad, Kandivali and Borivali, at lower-than-average prices, in order to push sales. Also, launches at Ulwe, Seawoods and Kharghar in Navi Mumbai during 2016, were at an average 5% lower than other established markets in the vicinity.

The value housing segment saw ticket sizes increasing by 26% to Rs 34 lakhs, as demand in this segment remained strong.

This was led by both, an increase in size, as well as an increase in average launch price. Category B developers offered 1.5 and 2-BHKs in peripheral locations such as Panvel, Ambernath, Mira Road, under the value housing segment category.

New units launched

2015 2016 % change
Value housing 2,500 2,900 15%
Mid 8,900 18,650 110%
High-end 4,300 3,300 -23%
Luxury 50 0 -100%
Total 15,750 24,900 58%

Note: Figures rounded off to the nearest multiple of 50.

However, developers in Mumbai raced ahead to launch projects during the year, with some large projects launches by reputed developers in the city. Therefore, launches in the mid-segment more than doubled to 18,700 units, while overall launches increased by 58% to 24,900 units.

Average ticket size (Rs lakhs)

2015 2016 % change
Value housing 27 34 26%
Mid 130 112 -14%
High-end 413 379 -8%
Luxury 3,520  –   -100%
Total 216 150 -30%



Launch of new units in Bengaluru declined by 42% to 17,300 units during 2016, partly due to delays in receiving completion certificates, on account BBMP’s drive to clamp down on encroached land and partly due to muted demand in the high-end and luxury segments, as well as anticipation of new rules under RERA, which has forced developers to postpone new launches. Only the value housing segment saw a surge by 21% as 6,460 units were launched during the year.

New units launched

2015 2016 % change
Value housing 5,350 6,450 21%
Mid 15,950 9,700 -39%
High-end 8,500 1,050 -88%
Luxury 200 100 -41%
Total 30,000 17300 -42%

Note: Figures rounded off to the nearest multiple of 50.

Average ticket size (Rs lakhs)

2015 2016 % change
Value housing 50 39 -23%
Mid 75 73 -2%
High-end 182 187 2%
Luxury 504 371 -26%
Total 112 81 -28%

The value housing segment in Bengaluru witnessed a 23% decline in the ticket size of new launches, to Rs 39 lakhs, mainly due to lower sizes offered by developers, to push sales in the market. The average unit size declined by 19% to 1,000 sq ft during 2016, while the average launch price fell 5% to Rs 3,800 per sq ft.

Locations of Sarjapur and Bommasandra in south, accounted for 34% of total launches in value housing, in the south and south-east in 2016, as they offered relatively smaller units.



All segments in Delhi-NCR witnessed a drop in ticket sizes in 2016, owing to slow sales velocity and subdued market sentiments. The steepest drop was seen in the high-end segment, wherein, the ticket size of newly launched units in 2016 declined by 62% to Rs 2.5 crores. The drop in ticket sizes came on the back of lower average launch prices, as well as smaller sizes of units launched.

During the year, developers launched projects at relatively less-expensive locations in Noida and Greater Noida, as compared to 2015, when launches were seen in more premium locations of Golf Course Road and Golf Course Extension Road. This resulted in the average launch price declining 40%, to Rs 9,000 per sq ft during 2016.

Overall, the average size of newly-launched units too declined by 37%, which brought down the average ticket size. The value housing segment’s ticket size dropped 17% to Rs 36 lakhs in 2016. The fall in average ticket size comes primarily due to a lower average unit size of 1,200 sq ft.

New units launched

2015 2016 % change
Value housing 9,200 4,450 -51%
Mid 13,750 5,750 -58%
High-end 650 1,150 74%
Total 23,600 11,350 -52%

Note: Figures rounded off to the nearest multiple of 50.

Average ticket size (Rs lakhs)

2015 2016 % change
Value Housing 43 36 -17%
Mid 98 90 -9%
High-end 648 247 -62%
Total 98 93 -5%

Overall, launches in Delhi-NCR declined by 52% to 11,400 units during 2016, as the region continues to reel under subdued sales velocity and piling up of unsold inventory. Having emerged as an investor-driven market in the last few years, Delhi-NCR has been one of the most impacted regions in the ongoing residential market slowdown.



The average ticket size in the value housing segment dropped by 25% in 2016, to Rs 18 lakhs. This was primarily led by a 24% drop in the average unit size, to 731 sq ft, as developers preferred to reduce unit sizes, rather than rationalising the average launch price.

Also, the launch of some large projects in relatively far-flung areas of Hatisala and Baruipur during the year, contributed to the quantum of launches doubling in the value housing segment. Overall, total unit launches in Kolkata declined 13% to approximately 13,000 units, with the market witnessing subdued activity over the years, further exacerbated by demonetisation.

New units launched

2015 2016 % change
Value housing 2,800 7,650 171%
Mid 9,000 3,000 -66%
High-end 2,800 2,250 -20%
Luxury 200  –   NA
Total 14,850 12,900 -13%

Note: Figures rounded off to the nearest multiple of 50.

Average ticket size (Rs lakhs)

2015 2016 % change
Value housing 24 18 -25%
Mid 45 47 5%
High-end 131 175 33%
Luxury 728 NA
Total 63 62 -1%



In Pune, overall launches rose by 14%, to 18,700 units in 2016, with the ticket sizes in value housing and mid-segment rising slightly, as these segments were comparatively more resilient to the ongoing slowdown in sales, as compared to other markets.

Launches rose by 20% in the value housing segment, to 8,600 units, with stable demand from end-users. In the value housing segment, the average ticket size too rose 10% in 2016 to Rs 30 lakhs, led by higher launch prices of some projects in the city.

Some projects in Hinjewadi and Bhugaon were launched at a higher rate, as compared to last year. Moreover, the year also witnessed the launch of value housing projects in Hadapsar, Kondwa and Lohegaon, which typically command higher prices.

New units launched

2015 2016 % change
Value housing 7,200 8,650 20%
Mid 7,700 9,200 20%
High-end 1,550 200 -88%
Luxury 50 700 NA
Total 16,450 18,700 14%

Note: Figures rounded off to the nearest multiple of 50

The ticket size in the high-end segment took a hit, with launches falling a massive 88% and the average ticket size almost halving. During the year, the average ticket size too almost halved to Rs 1.1 crores, as developers significantly rationalised unit sizes to 1,400 sq ft from 2,600 sq ft in the previous year. Only 3 projects were launched during the year, in locations of Mulshi and Pashan, as developers witnessed slow sales in this segment.

Average ticket size (Rs lakhs)

2015 2016 % change
Value housing 27 30 10%
Mid 59 61 3%
High-end 218 116 -47%
Luxury 516 375 -27%
Total 67 55 -17%



Total launches in the city rose by 43% to 11,800 units during 2016. A majority (67%) of the new residential launches in the city, are located in the western quadrant, due to its close proximity to the office markets of Madhapur, Hi-tech City and Gachibowli and better connectivity to other parts of the city.

Developers are focusing on the mid-segment, as the demand from IT-BPM employees in this segment is more. As a result, launches in the mid-segment rose three-folds, to approximately 9,800 units.

However, due to demonetisation in the last two months of 2016, developers focused on completing their existing projects, rather than launching new projects.

New units launched

2015 2016 % change
Value housing 300 250 -23%
Mid 3,250 9,750 202%
High-end 4,650 1,800 -62%
Luxury 50 50 -25%
Total 8,250 11,800 43%

Note: Figures rounded off to the nearest multiple of 50.

Average ticket size (Rs lakhs)

2015 2016 % change
Value housing 28 40 41%
Mid 68 66 -3%
High-end 177 175 -1%
Luxury 111 350 214%
Total 107 101 -6%

In Hyderabad, the average ticket size of new launches in the value housing segment rose by 41%, to Rs 40 lakhs in 2016, led by an increase in average unit sizes and higher average launch prices. The average launch price rose by 6% to Rs 2,650 per sq ft in 2016, as developers launched some projects at higher prices. However, a majority of the increase in the ticket size, was led by the higher average unit size, which rose by 33% to 1,500 sq ft.

The value housing and mid-segments in the city are witnessing stable demand, created by the salaried employees from the IT-BPM sector. Hyderabad’s housing market has been relatively resilient, owing to strong end-user demand, trickling down from the traction seen in the commercial office segment. Moreover, until 2014, the city’s housing market saw low prices owing to political instability in the state. The market has started picking up traction from 2015, post the bifurcation of the state.



Overall, in 2016, launches in the city have been impacted by political uncertainty. As a result, total launches in the city fell by 31%, to 6,400 units during 2016.

New units launched

2015 2016 % change
Value housing 800 500 -37%
Mid 8,000 4,200 -47%
High-end 350 1,700 368%
Luxury 100 0 NA
Total 9,300 6,400 -31%

Note: Figures rounded off to the nearest multiple of 50.

The ticket size of launches in the mid-segment, witnessed an increase of 40% in 2016, to Rs 81 lakhs. This surge in ticket size was primarily led by developers launching projects at higher prices during the year. The average launch price rose 33%, to Rs 6,170 per sq ft. The increase was led by higher quantum of units launched in core areas, such as Vadapalani, Anna Nagar west, Nungambakkam, MRC Nagar and Velachery, which typically command higher prices.

In the high-end segment, the average ticket size declined by 24%. The average size of newly-launched units declined 14%, to 1,820 sq ft. Most of the launches were witnessed in Vadapalani and RA Puram.

Average ticket size (Rs lakhs)

2015 2016 % change
Value housing 33 28 -14%
Mid 58 81 40%
High-end 297 225 -24%
Luxury 1,024 984 -4%
Total 107 121 13%


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