In the first quarter of 2013, there has been a noticeable decline in new project launches in Mumbai compared to the previous quarter of 2012. The disparity is striking, as the last quarter, coinciding with festive seasons such as Diwali, traditionally sees an uptick in new project announcements. As per reports from Liases Foras, the number of fresh launches peaked during that quarter across India.
Pankaj Kapoor, Managing Director of Liases Foras, highlighted that Mumbai is experiencing fewer new launches relative to the last quarter of 2012. This slowdown can be attributed to the ongoing inability to gather momentum in home sales, prompting developers to delay new projects.
Current home sales in Mumbai remain subdued, reflecting a sluggish demand for housing units. This prevailing negative sentiment in the market has been identified as a primary reason behind the postponement of new project launches by developers, who are currently focused on selling off unsold inventories.
Cushman & Wakefield's latest quarterly report, however, reflects a contrasting situation, indicating that a significant number of new projects were indeed introduced in Mumbai during the festive last quarter. Many developers unveiled new project launches in several Mumbai suburbs, including locations like Borivali, Dahisar, and Kandivali, with a noticeable focus on the ultra-luxury segment.
Experts within the industry project a more promising outlook for the upcoming quarter, particularly with Gudi Padwa, the Marathi New Year, scheduled in the April to June timeline, which typically encourages new project launches. Nonetheless, the strategy of introducing new projects amidst weak home sales carries risks, as it could adversely impact property prices and exacerbate the issue of unsold inventories. This calculated caution reflects the builders' hesitance to initiate new projects until a clearer market demand emerges for their unsold properties.