New launches increased by over 13 percent over corresponding period last year.
At a time when most markets struggle to cope up with the pressure of unsold inventory and the sector seems to be putting a break on new launches, Ahmedabad market ducked the trend and continued to top the chart in new launches.
As per the report, Ahmedabad witnessed an increase of over 13 per cent with launch of 9,750 units between April 16March 17 as compared to 8, 625 units in corresponding period of April 15-March 16.
Jaxay Shah, president, CREDAI, taking about the city and new launches said, “Ahmedabad real estate market has often defied the trends and continues to grow far and wide. Ahmedabad and Vadodara are regional growth hubs in their own right, which would outperform national trends in real estate owing to Gujarat being the fasted growing state in the country. The scenario is improving, and we are hopeful that things will get even better in the days to come.”
As per the report released by Cushman & Wakefield, the top eight cities witnessed residential launches of approximately 25,800 units in the first quarter of 2017, registering a 16-percent decline from the corresponding period last year. A closer look at the trend indicates that launches have seen a steady quarter on-quarter (Q o-Q) decline for the last four quarters, corresponding with the announcement of Real Estate Regulatory Act (RERA) 2016 in March last year and the demonetisation exercise in November 2016.
Interestingly during the period (April 2016 to March 2017), the share of affordable segment in total launches has improved to 30 percent compared to 25 percent in the same period in 2015-16. The share of high-end and luxury segments reduced to 11 percent from 13 percent during the same period.
Anshul Jain, managing director, India, Cushman & Wakefield, says, “Launches in the residential sector are expected to remain restricted over the next 2 to 3 quarters as developers will be making intrinsic changes to their business structure, operations and marketing strategies to comply with RERA norms. We expect investors’ and homebuyers’ interest to revive further in the residential sector post the enforcement of the RERA and GST.