The dipping sales volumes coupled with the depletion of liquidity in the market and the accumulated debt has put considerable pressure on the developers. "We anticipate only around 100 to 120 project launches around Diwali this year. Every quarter we see about 200 projects launched, and this time we expect a drop," says real-estate expert Ashutosh Limaye who quantifies the drop to be as high as 50% in some of the key property markets in the country.
"Mumbai and Kolkata will have the least new launches, followed by Hyderabad, Chennai and Pune" says Limaye who is the head of research and real-estate intelligence services, of Jones Lang LaSalle (JLL), a property consulting firm that has a global presence.
Fernandes who heads "Masss" which specializes in Market surveys of all new building projects, concurs, that there is a dip in the number of new project launches in Mumbai. "Our scouting team, is finding it more difficult each week to find new projects that are actually beginning work on the ground".
Besides the liquidity issue & the poor response from buyers, the strict policing of new projects by the Govt authorities have also led to builder taking a wait and watch postition.
During the period between September 2010 and January 2011, the Mumbai metropolitan region saw 50% jump in the number of real-estate launches "The response (to these launches) has been not been great and this adversely hit the inventory of the developers," says Samantak Das, national head, Knight Frank (KF)..
"Given the economic scenario, the inventory pressure & the Govt decisions, developers will be much more cautious.
It will cetainly be strong Economic logic that will guide new plans
(adapted from Econominc Times 26th AUg 11 )
"Mumbai and Kolkata will have the least new launches, followed by Hyderabad, Chennai and Pune" says Limaye who is the head of research and real-estate intelligence services, of Jones Lang LaSalle (JLL), a property consulting firm that has a global presence.
Fernandes who heads "Masss" which specializes in Market surveys of all new building projects, concurs, that there is a dip in the number of new project launches in Mumbai. "Our scouting team, is finding it more difficult each week to find new projects that are actually beginning work on the ground".
Besides the liquidity issue & the poor response from buyers, the strict policing of new projects by the Govt authorities have also led to builder taking a wait and watch postition.
During the period between September 2010 and January 2011, the Mumbai metropolitan region saw 50% jump in the number of real-estate launches "The response (to these launches) has been not been great and this adversely hit the inventory of the developers," says Samantak Das, national head, Knight Frank (KF)..
"Given the economic scenario, the inventory pressure & the Govt decisions, developers will be much more cautious.
It will cetainly be strong Economic logic that will guide new plans
(adapted from Econominc Times 26th AUg 11 )