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The first quarter of 2016 witnessed launch of approximately 31,200 units across the top eight – Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune, recording an increase of 27 per cent year–on–year, according to property consultants Cushman & Wakefield.
The residential market, which saw a slump in launches in 2015, saw a remarkable comeback in the first quarter, backed by a six-fold rise in launches in the affordable housing segment which saw an addition of over 10,950 units during Q1 2016 as developers foresee greater demand in this highly price-sensitive segment.
The affordable segment accounted for approximately 35 per cent of total launches during Q1 2016. Over the last few quarters, the share of affordable housing has constantly increased as developers and investors are viewing this segment more favourably.
“Developers have come to realize the vast potential of that was remaining untapped in the affordable housing segment. They have now come to recognize the potential of the segment and are expecting greater momentum in demand in the affordable segment as customers are seen to be more price-sensitive in the current market,” said Shveta Jain, Executive Director, Residential Services at Cushman & Wakefield.
“With strong emphasis on affordable housing by the government, tax incentives extended by the government, as well as the cautious approach by end-users in other segments, developers are betting on the affordable segment," she added.
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