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The wait for new Development Control Rules (DCR) prolonging for real estate developers in Ahmedabad, new residential launches in the city fell by 62 per cent at 200 units for the first quarter of calendar year 2013 as against 524 units for Q4 of 2012.
According to the latest quarterly report by real estate consulting firm, Cushman & Wakefield (C&W), launches of residential units remained subdued since the last year due to the expected changes in the Floor Space Index (FSI) norms across the city.
However, according to the report, real estate developers are expected to launch new projects only once the new regulations are in place.
"The new DCR propose to raise FSI across the city and would lead to development of high-rise structures. Extra FSI will also be sold to developers for a fee, proceeds of which will be used for mainly the infrastructure development of the city," the report further stated.
Nationally, C&W reported that an estimated 38,000 residential units were launched by organized developers in the first quarter of 2013 in major cities[1] registering a marginal decline of approximately 2% over the previous quarter. The mid-range segment continued to constitute majority (60%) of the overall launches during the quarter.
Bengaluru recorded the highest number of launches in Q1 2013 at 11,622 units contributing close to 31% of the overall new supply in the top eight cities followed by NCR and Mumbai.
Moreover, the mid-range segment had the highest contribution to new launches at close to 60 per cent.
The Ahmedabad Urban Development Authority (AUDA) has also proposed the creation of an affordable housing zone in a 76 sq-km area encircling S.P Ring Road, a peripheral location, along with 38 defunct mills in Central Ahmedabad, which is likely to provide a much-needed boost to the sector.
Meanwhile, select peripheral locations like Ranip, Gota, Bopal, South Bopal and Vaishnodevi saw healthy transaction activity due to availability in affordable projects.
