30% housing plans launched this year: Cushman & Wakefield report

By Accommodation Times News Service

According to the report of the global property consultant Cushman & Wakefield Mumbai city itself has witnessed the launch of nearly 30% as compared to the previous year. These new launches were in Andheri, Bandra, Malad and Goregaon followed by Navi Mumbai and central suburbs area. The report said that submarkets of south, south central and western suburbs witnessed substantial rise in capital values in the range of 17-24 % over the past year due to less availability of quality ready flats. Most high-end projects in these areas are under construction. Capital values rose by 3-6 % for the mid and high-end segment in central, western suburbs, Thane and Navi Mumbai.
Said Shveta Jain, executive director, residential services, Cushman & Wakefield, despite sluggish demand, many new launches are aimed at the high-end segment. This is because of high land and development costs for which developers have chosen to go for higher ticket size projects though the demand is more for affordable and mid-end segments. The subdued sales activity has developers reducing flat size than reducing prices.
Developers tried to reduce ticket size by offering smaller configurations, especially in south Mumbai. This helped reduce ticket size by up to 20-25 % and increase sales velocity.

An estimated 47,000 residential units were launched in the second quarter of 2013 in major cities, registering an increase of approximately 14% over the previous quarter.

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