Quaterly increase of 43 percent in new residential unit

Cushman & Wakefield recorded that, there has been a 43% increase in Q1 2014 new residential unit launches from the previous quarter. The total estimated unit launches were recorded at 55,500 units across major eight cities of India with Bengaluru recording the largest number of units launched, an increase of 22% from previous quarter. NCR on the other hand saw the sharpest decline in launches of new residential units with a drop of 18% over previous quarter. Barring NCR and Ahmedabad, all other cities saw a rise in the total units launched in Q1 2014 over previous quarter. Mumbai and Bengaluru together constituted around 50% of the total unit launches in Q1 2014.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield says “Developers have taken a conscious decision to launch projects in the first quarter of 2014 as they anticipate sales to improve this year in the second half foreseeing economic stability that will most likely prompt purchase decisions from end users. In addition to this, some developments which were held up for approvals have also seen the light of the day, notably faster environmental clearances and approvals that have enabled developers to launch their projects in this quarter. However, as concerns about the inflationary trends in the economy and an expected adverse impact of the El Nino remain, we believe that a cautious approach needs to be maintained for residential markets that are not primarily driven by end-user demand. With the general elections already past the half-way mark, the industry and buyers are eagerly looking forward to some positive policy changes to boost the housing sector by the new government that emerges.”