Categories: Launches

Real estate suffers huge jolt, homes launches in 2017 plummeted by 78pc

New Delhi, January 16, 2018: Real estate market suffered a huge jolt in India as homes launches in 2017 plummeted by staggering 78pc from the peak of 2010.

According to a report by Knight Frank India all cities witness fall in launches in comparison to previous years, but Hyderabad was worst hit.

Knight Frank report said that volume of new projects entering the market in the second half of 2017 stood at approximately one-fourth of the supply levels in 2015. Launches were below the demonetisation-hit second half (H2) of 2016.

According to Knight Frank India eighth edition of its flagship half-yearly report – India Real Estate at 84 per cent, Hyderabad records steepest fall in launches. Other IT/ITeS dominated markets such as Pune (58 per cent), Bengaluru (37 per cent), Chennai (33 per cent) also witnessed massive drop in launches.

It said that the sales struggle across markets in which Bengaluru saw downtrend of 34 per cent. Mumbai (19 per cent) and NCR (21 per cent) see a spike on a demonetisation base effect. Bengaluru, in particular, recorded negative growth in both launches (-37 per cent) and sales (-34 per cent) for the first time in H2 2017. Hyderabad also recorded the decadal low in home launches.

The weighted average prices fell by an average of 3 per cent across cities with Pune witnessing the highest decline of 7 per cent year on year (YoY) followed by Mumbai at 5 per cent YoY. Markets high on ready to move inventory such as Hyderabad and Ahmedabad saw prices move up 3 per cent and 2 per cent respectively.

As far as office spaces are concerned, new completions increase by 7 per cent in 2017 but not at par with occupiers’ demand. Supply in H2 2017, 13 per cent up YoY. Transactions maintain a steady momentum. Technology sector headwinds and supply crunch was responsible for subdued growth.

United News of India

Recent Posts

The Rise of Premium Luxury Residences: How NCR is Setting New Standards

New Delhi, November 21, 2024: Over the years, Delhi-NCR has emerged as a hotspot for…

11 hours ago

3A Composites’ Flagship BrandALUCOBOND Launches a Premium Product ‘ALUCODUAL®’

~ The Company strengthens the product portfolio with the launch of innovative & ‘Made in…

11 hours ago

Government Policies and Housing Premiums Under Spotlight in latest Mumbai Realty Report

- NAREDCO Maharashtra and 1 Finance Unveils Comprehensive Study on Mumbai's Real Estate Landscape -…

1 day ago

Onward Workspaces Expands with leasing 18,000 Sq. Ft. Premium Facility at Emaar Capital in Gurgaon, Catering to Global Enterprise

The announcement marks a major step in offering Flexible Grade-A Office Solutions for Modern Businesses…

1 day ago

Studio Apartments: Smart Investment Choice for Buyers

Considered as hot investment opportunity for the real estate enthusiasts, Studio apartments present several advantages…

3 days ago

Rethinking Urban Spaces: The Role of Mixed-Use Developments in City Planning

New Delhi, November 18, 2024: As Indian cities grapple with rapid urbanization, evolving lifestyles, and…

3 days ago