New residential launches dip 28% in 2014 despite upward market

The country's residential property market in 2014 witnessed a 28 per cent decline in launches and 17 per cent dip in sales volume, as compared to 2013, according to a report.
Property consultant Knight Frank in its recent report 'India Real Estate Outlook' said due to a slowing demand environment, residential sales across top six cities, including Delhi NCR, Mumbai, Pune, Bengaluru, Hyderabad and Chennai, dropped during 2014.
The office space segment, however, performed well during the year on the back of recovery in the domestic market which fuelled higher demand for commercial space.
"Due to a correction in stake-holder sentiment on the back of a slowing demand environment, residential sales dropped during 2014. Office markets across the top six cities, however, displayed a turnaround during the year, mainly backed by the IT/ITeS and BFSI sectors," Knight Frank Chief Economist and Director Research Samantak Das told reporters here today.

While sales volumes in the residential segment fell by 17 per cent, launches dropped by 28 per cent compared to 2013. On the commercial space, absorption rose by 14 per cent, while completions declined by six per cent compared to 2013.
A total of 234,930 units were sold during 2014 compared to 284,550 units in 2013. Similarly, 268,950 units were launched in 2014, against 372,160 units in 2013.
Mumbai witnessed the sharpest decrease in new launches, at 43 per cent during 2014, followed by Hyderabad, with a 30 per cent drop.
NCR witnessed the sharpest decrease in sales volume, at 43 per cent, during 2014, followed by Hyderabad, with an 18 per cent drop. Mumbai, however, continued to retain the top slot among the top six cities for achieving the highest sales volume in 2014. This was followed by Bengaluru.