North, East Cities See 88% Increase In New Launches

Efforts of the government and the developers to revive the real estate sector are starting to pay dividends. According to a PropTiger DataLabs report (Monthly Realty Watch: North & East August 2016), combined new launches in major eastern and northern cities — Gurgaon, Noida and Kolkata — went up 88 per cent in the month of July. On the other hand, while property price largely remained range-bound in the two northern cities, some localities in Kolkata saw a healthy annual price appreciation.

A fresh start

According to the report, West Bengal capital Kolkata saw a tremendous growth in new launches, and witnessed a 300 per cent increase over the previous month in July. Majority of the new launches were concentrated in localities of Baruipur, New Town and Sonapur. Developers who launch their projects in the city include Dharitri Infraventure, Ideal Group, Ruchi Realty, Kaypee Realcon, Rohra Developers and Vinayak Group and PS Group.

Gurgaon, which contributed 36 per cent to the combined launches in the three cities, saw developers like Aashiana, Aasara, Orris and MKS Venture launching their projects in the city.  Compared to previous months, this is a remarkable improvement in terms of new launches.

In Noida, ATS and Aaradhyam Group launched new projects, while the city's contribution to the total launches stood at 23 per cent. It has to be noted that Noida was among the cities which had the highest inventory stock and developers have been so far refraining from launching new projects here.

Not a pricey affair?

According to the report, property prices in northern cities of Gurgaon and Noida remained largely range bound. While localities like Gold Course Extension Road and New Gurgaon saw a marginal annual increase, some localities also saw a marginal decline in prices. In Noida, the decline in prices was more prominent, with some localities witnessing a five per cent price fall.

Kolkata, on the other hand, is a different story altogether. Localities like Ballygunge and Salt Lake City saw an annual price increase of 11 per cent in July, while prices went up between two and four per cent in other localities.