Slowdown pushing down decline in NCR real estate projects :
As there is an ongoing slowdown in India’s real estate sector, there is a sharp decline in the number of new real estate projects in the national capital region or NRC. This is being expressed by the global real estate consultancy firm Cushman and Wakefield in a yet-to-be-released real estate report.
Whether it is Bangalore, Mumbai or the NCR region, this report on India’s current real estate scenario, says that driven by the ongoing slowdown in the real estate sector, new project launches were down 54 per cent in the national capital region, 27 per cent in Bangalore and 11 per cent in Mumbai during July-September 2014, when compared to the corresponding period in last year.
Even though India as a whole country experienced a decline in new projects, this was specifically down in the affordable housing segment of the country. But on the other hand, smaller real estate markets such as Pune, Hyderabad, Chennai and Kolkata witnessed an increase in new real estate project launches and beat this downing of real estate trend considerably.
According to the experts in the real estate segment, this decline in demand can be attributed to oversupply in most of these cities because of the weak sentiments in the market and further driven by slower growth rate in sales. Additionally there are also factors such as unavailability of land due to tough land acquisition law, which are hindering the growth of new projects in these cities.