As many as 19,000 residential units were launched in top six cities during January-March period, with the megapolis witnessing the highest number of launches, a study said.
According to a Colliers International study, amidst cautious sentiment, nearly 19,000 units were launched in top six cities including Mumbai, Bengaluru, Pune, Gurgaon, Noida and Chennai.
Maximum launches were concentrated in Mumbai, nearly 6,500 followed by Bengaluru (6,000) and Pune (2,200). While 1,100 units were launched in Chennai, there was a marginal improvement in the launches in Noida and Gurgaon.
"While developers across all major cities steered clear of inundating the primary residential segment with too many new products, recovering market confidence prompted them to lure buyers with cash discounts and freebies," its Senior Associate Director Research Surabhi Arora said.
She further said the falling interest rates and introduction of Real Estate (Regulation and Development) Act, 2016 has helped to recuperate the sentiment.
"What we need to resurrect in the residential market now is an affordable product with basic amenities at right price point. We are witnessing steady enquiries mainly in the affordable and mid-segment which is a good sign," Arora said.
The report pointed out that capital and rental values are expected to be rationalised in the near term as residential markets across all major cities witness developers' focus on clearing unsold inventory.
"Falling interest rates coupled with the introduction of Real Estate (Regulation and Development) Act, 2016 are expected to stimulate end user demand and lead to market recovery. However, it will take some time to bring back fence sitting investors into the market again. Thus in the short term we are expecting capital values to remain stable," Arora added.