A Cushman & Wakefield report for 2012 puts the residential units launched in Hyderabad at approximately 8,000, with a considerable chunk of them launched only during the second half of the year
The demand for mid-segment housing in the city got more pronounced last year with several builders apparently tailoring their projects to meet the need. At the same time, the year 2012 witnessed a drop of 2 per cent in terms of residential units launched when compared to the year 2011.
The latest report from Cushman & Wakefield for the year 2012 put the residential units launched in Hyderabad at approximately 8,000 with a considerable chunk of them launched during the second half of the year.
While the first half of the year had around 1,200 new units launched, the second half of 2012 witnessed a significant rise with nearly 6,500 units. The difference between the two halves of the year has been attributed to revision of the Land Reservation Clause announced towards the end of June.
However, the total number of units in 2012 at 7,922 is found to be less by 2 per cent when compared to the earlier year, which witnessed launch of 8,110 units.
Of the total stock launched last year, 5,221 units working out to more than 60 per cent, catered to mid-end segment and concentrated in the north-west of Hyderabad. The price range for these units has been between Rs. 40 lakh and Rs. 70 lakh.
In documenting the residential market in major cities across the country for 2012, Cushman & Wakefield reports a drop of 16 per cent over the previous year in terms of total number of units launched. Last year saw the launch of approximately 1,62,000 new units of residential properties across eight major cities, of which mid-end segment comprised approximately 83 per cent.
Among the cities, with nearly 54,500 new units, NCR constituted a majority (34 per cent). Pune recorded the second highest number of fresh launches at approximately 24,000 units, followed closely by Mumbai (22,500) and Chennai (20,800). Bengaluru recorded a drop of 50 per cent in the number of new launches over previous year, the Cushman & Wakefield report adds.
In 2012, the residential market saw proactive and innovative marketing and new launches of specialist projects on one side but restrained activities in terms of large-scale development as most developers were cautious not to overestimate the end-user demand market, says Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield. “Aspects like high consumer inflation, existing high home loan interest rates and slower growth of the economy had a strong impact on the end users making them more price sensitive than previously experienced,” he says.