Launch prices of mid segment flats drop 4-20% in select markets: Report

The launch prices of new residential projects in NCR, Mumbai and Bengaluru dropped by up to 20 per cent in 2015, a new report said on Monday.

According to a research report by real estate consultancy Cushman & Wakefield, new residential projects in select micro markets are cheaper by 4-20 per cent on Average Weighted Basic Sale Price over the last two years.

“Goregaon in Mumbai registered the biggest decline in Average Weighted Basic Sale Price at 20 per cent where the rate averages at ₹10,500 per square feet in 2015 followed by Thane which saw 18 per cent decline,” it said.

Southern Peripheral Road in Gurgaon also saw a decline of 10 per cent in average base selling price of new launch projects compared to 2013. However, most of the submarkets in Bengaluru witnessed steady launch prices except in Far South and Western submarkets where average new launch prices in 2015 declined by 2-7 per cent compared to 2013, the report added.

Shveta Jain, Managing Director, Residential Services, India Cushman & Wakefield, said, “The economic confidence slowly creeping back into end user sentiment aided by a corrected base price as well as lowered ticket size is likely to provide the needed boost to improve sales.”

However, South East micro market of Bengaluru was an exception to the rule where both the average weighted basic sale price (19 per cent) and the average ticket size (18 per cent) of apartment saw an increase.

The report tracks the development activities across Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR; Thane, Goregaon and Malad in Greater Mumbai and South-West and Southern submarkets in Bengaluru.