Published: Sat, January 13, 2018
Worldwide | By Isabel Fisher

Home launches crash by 41% in 2017

Home launches crash by 41% in 2017

Sales declined marginally to 1,07,316 units in the second half of 2017 from 1,09,159 in the comparable period in 2016.

The report also suggested that the new launches of residential units had collectively come down by 78 percent at Mumbai, Delhi NCR, Chennai, Pune, Bengaluru, Kolkatta, Hyderabad and Ahmedabad. "Once the RERA get streamlined, the residential market will turn into a consumer-oriented market", the research team said.

"At the end of 2017, India's residential sector appears to have shrunk to a fraction of its size in less than a decade. A year ago, it was 12.9 quarters", she said. That's great news for homebuyers because average asking prices in the Chennai residential real estate market have come down by 3% since 2016.

The RERA came into force from May 2017, while the GST was launched in July previous year.

According to Paramvir Singh Paul, Knight Frank Pune branch director, Maharashtra was the only state that notified RERA rules in a timely manner and subsequently implemented it across the state. The sales figures are less shocking-on a y-o-y basis 2017 sales were down 8%.

"Supply grew 13 per cent to 12.5 million sqft compared to 11.1 million sqft in 2016, and the report blamed the headwinds in the technology sector and supply crunch for this subdued growth".


The stagnation in the market, according to the report, is owing to ambiguity over Real Estate (Regulation and Development) Act and concerns of job security in IT sector.

The Indian property market will continue to face headwinds this year and no hardening of prices is expected, according to Knight Frank. The age of unsold inventory is a matter of concern, said Krishnan.

It presents a comprehensive analysis of the residential and office market performance of Hyderabad for the period July December 2017, a company release said. Home affordability remains the highest in Mumbai at 7.8 times a family's annual income, compared to 11 times annual income in 2010.

However, though the discounts offered in just-launched or under-construction properties in early stages were higher, sales in those units were slow since customers preferred to purchase ready-to-move-in homes or those nearing completion.

New project unveiling in H2 2017 plummeted by 23% YoY and as developers' focus shifted towards completing existing projects. "The pace at which developers align themselves to the new regulatory norms and launch new products in the right ticket sizes that appeal to the homebuyer's interests, will determine the trajectory of the market going forward".

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