As the real estate developers across major Indian cities have now put their entire focus on complying with the new Real Estate Regulatory Authority or RERA guidelines, there has been reported a quantum dip of 83% in the launch of new homes in the third quarter of the calendar year 2017. The report by PropEquity which is into real estate data and analytics has reported the launch of just 4,313 units as against 24,900 units.
Implementation of GST is also cited as another major reason for the slow launch of residential units. But the festive season is expected to bring cheers to the real estate sector as the demand for resale as well as ready-to-move-in properties remains stable.
For the study, eight cities considered were include Noida, Gurgaon Pune, Bengaluru, Mumbai, Kolkata, Chennai and Hyderabad.
The founder and CEO of the company said, "This year the festive season has begun early and now we are witnessing the green shoots of recovery in the real estate sector specifically in mid and affordable housing". "Last November, the demonetization severely impacted the real estate sector across India and that led to low transactions. There is definitely stable demand for ready-to-move-in and resale properties."
The inventory in the sector also declined to 4,46,730 units, a drop of 4% as developers focused on clearing unsold inventories which are at the completion stage. Also, a drop in new home launches help clear the old existing inventory with the developers.
The demand in the space across major cities declined by a staggering 35% to just 22,669 units as there were only few new project launches and also the sector is going through a lag phase in the end-user demand revival.
The CEO further added, ""We expect this festive season to do better than last year as developers are now offering lot of freebies and discounts to clear their earlier stock as well as selectively launching new projects. There is lot of unsold inventory in the market which is nearing completion".