New launches in residential segment increase by 43% in Q1: Cushman

The numberof new launches in the residential segment during the first quarter of thisyear has increased by 43% at 55,000 units across eight major cities. Bengaluru recordedthe largest number of units launched at an increase of 22% at 16,838 units, according to a report by real estate consultancy firm Cushman & Wakefield.

Bengaluru was followed by Mumbai and Chennai with new launches at 10,698 units and 7,436 units with a growth rate of 93% and 191% during the first quarter. NCR saw the sharpest decline in number of new launches by 18% at 6,555 units.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield says, "Developers have taken a conscious decision to launch projects in the firstquarter of 2014 as they anticipate sales to improve this year in the secondhalf foreseeing economic stability that will most likely prompt purchasedecisions from end users.

"The luxury segment grew by 120% in the first quarter. The largest number oflaunches was in the mid-end segment at 90% over the previous quarter. Rental values remained stable in Ahmedabad, Chennai, Hyderabad and Kolkata during the quarter. However, the rental values in a few high-end segment submarkets of Bengaluru, Mumbai and NCR registered a decline in the range of 3-10%, primarilydue to large companies and individuals adopting a cautious approach in the wakeof overall economic scenario and political environment in the country.

A fewmid-end segment sub-markets of Bengaluru, Pune, Thane (Mumbai) witnessed an increasein the range of 2-14%, the report said.According toanother report by Dun & Bradstreet (D&B), the demand in residentialreal estate segment is expected to pick up in the second half of FY15.

With GDP expected to grow by 5.5% as per D&B estimates, coupled with easingof inflationary pressures towards the end of FY15 are expected to improve theconsumer sentiment. However, thedemand for office space is likely to be subdued during the fiscal.