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 Reflecting the subdued demand in the real estate sector that led to developers curtailing supply fearing a glut, the number of new residential units in calendar year 2012 saw a 16 per cent decline across eight major cities of India, with Bangalore witnessing 50 per cent drop, according to a report.

The city saw 16, 543 units launched in 2012, compared to 32,816 in 2011, while the overall new launches across New Delhi (NCR), Chennai, Kolkata, Mumbai, Pune, Hyderabad, Ahmedabad and Bangalore were 1,61,708 units in 2012, compared to 192,995 units in 2011, according to the report released by real estate services firm Cushman & Wakefield. Kolkata, Mumbai and Pune bucked the trend, witnessing growth.

In absolute terms, maaximum launches in 2012 were recorded in New Delhi (NCR) at 54,439 units, followed by Pune 24,127 units, Mumbai 22,423 units and Chennai 20,729 units.

The Executive Managing Director, South Asia, Cushman & Wakefield, Sanjay Dutt, said: “In 2012 the residential market saw proactive and innovative marketing and new launches of specialist projects on one side but restrained activities in terms of large scale development as most developers were cautious not to overestimate the end user demand market.

Aspects like high consumer inflation, existing high home loan interest rates and slower growth of the economy had a strong impact on the end users making them more price sensitive than previously experienced. On the other hand, cash strapped developers were not willing to take up projects that may fall short in interest from end users, thereby keeping their risk exposure to minimum.”

In Bangalore, out of total residential units, maximum launches (75 per cent) catered to the mid-end segment while high – end and luxury units were launched more cautiously. North Bangalore witnessed maximum number of unit launches owing to availability of land coupled with improving infrastructure.