Launch of new homes dropped by 12 per cent to over 172,000 units so far during this calendar year in the eight major cities due to cautious approach by developers in view of slowdown in demand, according to global property consultant Cushman & Wakefield.
National capital region (NCR) saw a decline of 33 per cent in new launches this year at 38,411 units compared with 57,098 flats in the year-ago period.
"There has been a drop of 12 per cent in new residential project launches in 2013 as over last year. Total estimated unit launches were recorded at 172,500 units across major eight cities of India," C&W said in a statement.
In 2012, these eight cities - Bengaluru, NCR, Chennai, Mumbai, Kolkata, Ahmedabad, Hyderabad and Pune - witnessed 196,846 units of new launches.
Bengaluru recorded the largest number of units launched this year at 49,279 flats, up by 15
"Chennai on the other hand saw the sharpest decline in launches of new residential units which represented a drop of 39 per cent over last year," it added.
NCR (-33 per cent), Pune (-20 per cent), Ahmedabad (-5 per cent) and Hyderabad (-3 per cent) recorded a decline.
Commenting on the report, C&W Executive Managing Director South Asia Sanjay Dutt said: "In the current economic scenario both buyers and developers are taking a cautious approach not only towards residential real estate but across all asset classes of real estate."
He noted that developers have not been able to lower cost due to upward movement in costs incurred on land, construction, and debt.