New launches of residential units in seven major cities in the country have decreased by 11 per cent during the first half of 2019 with real estate developers focusing on delivery of already launched projects, property consultant JLL said in a report. According to the findings of JLL’s Tour of India's Top Residential Hotspots released Tuesday, the decline in new launches was witnessed in Delhi NCR, Bengaluru, Mumbai, Kolkata, Chennai, Hyderabad and Pune. Developers also chose to adopt a wait and watch approach during the general elections held in April and May and focused on clearing the unsold inventory, it said. Going ahead, new unit launches across the seven cities were expected to remain modest as developers realign their product mix to suit market demand.
Realtors continued to capitalise on the demand and supply side incentives of the government to cater to the unmet demand in the lower and mid-income groups, it said. Launches in H1, 2019 showed a sizeable proportion of new supply in the affordable and mid-price segment stood at 58 per cent. JLL’s study found metro cities of Delhi, Mumbai, Kolkata and Chennai grew between 8 and 12 per cent in last five years. Neighbouring peripheral areas which form part of the overall development area grew at a higher pace. Thane district grew by 22 per cent as against 9 per cent of Mumbai due to shift of offices to peripheral locations and affordable housing options.
Chennai grew by 8 per cent while neighbour- ing Kancheepuram grew by 36 per cent led by higher demand for mid-income and affordable housing segments, it said. JLL India, CEO and Country Head, Ramesh Nair said, sales across top seven cities were likely to receive a further fillip with progressive policies of the government. "Series of reforms and rising buyers' interest in the segment have propelled the sector to align itself to the market demand. "..In most cities, buyers continue to focus on ready to move in projects and those projects nearing completion. As a result of this shift in preference, developers too are focused on completing their ongoing projects, he said. PTI VIJ VS VS 07021829