New home launches dip 35 per cent

Housing sector witnessed 35 per cent fall in new supply during 2017 in eight major cities to about 74,000 units, but launches of low-cost homes rose by 6 per cent, according to a report by Cushman & Wakefield. 73,956 new home launches estimated in 2017, compared with 1,13,044 units in the previous year in eight cities — NCR, Mumbai, Chennai, Kolkata, Bengaluru, Ahmedabad, Pune and Hyderabad. 8 per cent to 52 per cent  decline range recorded in launches in the 8 cities, mainly on account of implementation of real estate regulatory law RERA under which all ongoing and new projects have to be registered with the authority. RESIDENTIAL MARKET 35 per cent  yearn-on-year decline in residential launches since 2016, with only the affordable housing segment seeing a rise in launches in 2017. CITY-WISE DECLINE Home launches fell the highest in Ahmedabad by 52 per cent to 4,680 units during 2017, followed by Hyderabad by 51 per cent to 5,837 units, Bengaluru by 47 per cent to 9,219 units and Kolkata by 45 per cent to 7,127 units. Chennai saw a dip of 44 per cent to 3,595 units during 2017, while Pune witnessed a decline of 4 per cent to 10,730 units and Delhi-NCR by 14 per cent to 9,792 units. Home launches fell by only 8 per cent in Mumbai at 22,976 units as Maharashtra timely established the state regulator. AFFORDABLE HOUSING 6 per cent growth in affordable housing launches to 31,241 units, with Mumbai leading the trend. Mumbai contributed the highest to affordable category, recording over 11,000 new units. Pune with the launch of 5,700 units saw second highest numbers. Luxury segment posted 70 per cent fall in launches to 331 units, while high-end by 57 per cent to 4,943 units and mid-range by 47 per cent to 37,441 units. PERFORMANCE IN 2017 The year 2017 was a precursor to the much-needed stability of the residential market as seen in the nature of launches. The realty sector saw an eventful year with drastic statutory changes and it will continue to realign itself to end users’ demands well into 2018.