Mumbai sees 18% dip in new housing project launches in first half 2015: CBRE

MUMBAI: Residential property market in Mumbai witnessed around 18% decline in new project launches during the first half of 2015, according to a report by property consultancy CBRE. Subdued demand levels and the presence of unsold inventory led to a slowdown in new project launches as against preceding half year ending December 2014.

The Mumbai residential market witnessed a decline in supply addition and sales activity. The uncertainty surrounding the Development Plan (DP) 2034 for Greater Mumbai further contributed to subdued market sentiments, the report said.

The Extended Eastern Suburbs including locations such as Mulund west, Kanjurmarg and Bhandup, and Thane city accounted for more than 50% of the total units launched during the period in Mumbai Metropolitan Region. Most of these new launches were concentrated in the high-end / mid-end segments.

The western and eastern suburbs of Mumbai witnessed steady supply addition and accounted for a sizeable share of the total supply introduced during the period. In the suburban locations, project launches were largely concentrated at Bandra (East), Andheri (East) in the western suburbs; and Chembur, Ghatkopar (west), Kurla (east) and Powai in the Eastern Suburbs.

In the luxury and mid-end segments, capital values witnessed stability across all micro-markets owing to a slowdown in sales volume. On the leasing front, markets remained largely stagnant with negligible rental revisions being witnessed across micro-markets during this review period, the report added.