No Gudi Padwa for builders

A continuous decline in sales over the past few months has made realtors wary of announcing new projects.

Though realtors have traditionally favoured the Maharashtrian New Year to announce new projects, this Gudi Padwa (April 4) saw fewer launches than last year. Top consultants say the dip could vary from 40% to 80%. A few even peg it at the higher end.

“Not many project launches were seen this Gudi Padwa as is the tradition,” said Ambar Maheshwari, head of investment advisory, India, at DTZ.

Data from Jones Lang LaSalle showed around 8,000 new projects were launched during the January-March quarter. This is about a fifth less than last year’s figures during the same period, he said.

Analysts say a decline in sales is the primary reason behind fewer launches. “There was a supply glut last year, but several new projects were launched during March-April,” Abhishek Gupta, head of research and real estate intelligence service, Jones Lang LaSalle, said. “Lower sales because of high property prices could be the main reason.”

Anand Gupta, secretary of the Builder Association of India, said sales fell around 22% during January-March 2011 compared to the same period last year. “Not only sales, inquiries too have fallen,” Gupta said.