Developers in certain micro markets of metros like Delhi-NCR, Mumbai and Bengaluru witnessed a drop of 4-20 per cent in launch prices of residential projects in 2015 over the previous two years, a report said.
According to the report by property consultant Cushman & Wakefield, metropolitan cities of Delhi-NCR, Mumbai and Bengaluru recorded a drop in launch prices in high development activity markets of these cities.
As per the study, new residential projects in select micro markets are cheaper by 4-20 per cent on average weighted basic sale price over the last two years.
The report tracks the development activities in locations of Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR, Thane, Goregaon and Malad in Greater Mumbai, and south-west and southern sub-markets in Bengaluru.
The suburban location of Mumbai’s Goregaon registered the biggest decline in average weighted basic sale price at 20 per cent, where the per square feet rate averaged at Rs 10,500 per feet rate in 2015, followed by Thane which saw an 18 per cent decline.
Southern Peripheral Road in Gurgaon also saw a decline of 10 per cent in average base selling price of new launches, as compared to 2013.
In contrast, most of the sub-markets in Bengaluru witnessed steady launch prices, except in far south and western sub-markets, where average new launch prices in 2015 declined by 2-7 per cent, as compared to 2013.
South East micro market of Bangalore was an exception to the rule, where both the average weighted basic sale price (19 per cent) and the average ticket size (18 per cent) of the apartment saw an increase.
Delhi-NCR witnessed launches of 23,000 units in 2015, out of which 79 per cent were launched in the locations of Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR. Half of the total new launches in 2015 were in the mid-segment, the report said.
Mumbai, on the other hand, witnessed a 37 per cent decline in residential unit launches, totalling 15,735 units, from the corresponding period last year with Mulund, Thane, Goregaon and Malad accounting for nearly 51 per cent of the total launches during 2015.
The new launches in 2015 have been smaller in configuration, therefore, with reduced base selling prices and smaller units, the ticket size or the cost per apartment has also seen a decline in these key markets, the report said.
A majority of the new launches (83 per cent) were concentrated in the mid-segment. While new launch prices have remained stable across most sub-markets, developers in the far south reduced the average weighted basic sale price in the mid-segment by 7 per cent, to remain competitive.