 "An under construction high-rise residential tower is pictured behind an old residential building in Mumbai")
New launches in the housing segment across the top seven cities came down by a fifth to 120,000 units in 2015, from 150,000 in 2014, said a report from Colliers International, a commercial real estate services entity.
“Despite a decrease in home loan interest rates and incentives by developers, transaction volumes in residential real estate continued to remain on the lower side. A primary reason has been increasing delay in under-construction projects, quality issues, and higher price points,” it said.
In 2016, property markets are expected to edge into recovery, with falling interest rates and more employment due to a rise in office-space absorption. Capital values across cities are expected to remain stable, due to a huge supply pipeline.
The report says Bengaluru continued its top run in the commercial and residential market; 2015 saw the launch of nearly 22,000 new housing units. Nearly a third of these were in the southern and south-eastern belt, comprising locations such as Sarjapur Road, Electronic City, and Bannerghatta Road.
The Chennai residential market saw signs of revival despite a natural calamity and low sales velocity.
Nearly 12,000 new units were launched in 2015. Several locations along the Old Mahabalipuram Road saw mid-segment launches.
Mumbai had a decline in new launches, at 35,000 units, about 40 per cent less than last year's. The Delhi-National Capital Region market had a dull year, with launch of around 2,400 units. Pune recorded 32,000 units, a four per cent decline.
