'Housing projects in city decline 75% in H1 2012'

New residential project launches in Hyderabad declined by nearly 75 per cent to 1,500 units in the first half of 2012 over the year-ago period, according to a report by real estate consultant Cushman & Wakefield (C&W).

The total number of new residential units launched was approximately 1,500 units in first half of 2012 compared to over 6,000 new project launches during the same period last year in Hyderabad, a C&W research report said.
The drop in new launches was largely due to the to ambiguity in the governmental policy, it added.
It, however, added Hyderabad is likely to see around 40,000 residential units entering the market in the next three years, of which nearly 60 per cent will cater to the mid-segment category.
Relaxation in land reservation regulation will positively impact the residential markets with increased new launches in future.
There are approximately 4,000 units in pre-launch stage in prime and upcoming locations of the city, C&W Executive Managing Director South Asia Sanjay Dutt told reporters here today.
Majority of under construction projects are concentrated in Western and North Western markets.
Western areas of Madhapur, Gachibowli, Tellapur, Kondapur are expected to see 42 per cent (16,800 units) of the estimated supply followed by north-western locations such as Kukatpally, Miyapur, Nizampet which would witness 8,000 units, he said.
C&W expects an increase of 48 per cent over last year in pre-commitments of office space, estimated to be 2 million square feet by the end of this year, which indicates a positive demand trend for the city.
The demand for commercial office space in Hyderabad is expected to increase moderately from next year onwards as economic conditions improve, Dutt said.

PTI