Demonetisation and RERA effect: Delhi-NCR home sales drop 26 per cent
The double blow of demonetization and the new Real Estate (Regulation and Development) Act compliance dragged down housing sales in Delhi-NCR by 26 per cent in the first half of 2017, despite a 20 per cent price cut over the past 18 months, according to a Knight Frank India study.
The region has the highest amount of unsold property-- a staggering 1.8 lakh units-that is expected to take developers four-and-a-half years to sell.
Only 17,188 units were sold in the first half of 2017, compared to 23,092 units in H1 2016. However, housing sales improved by two per cent compared to the previous six months, which saw the lowest half-yearly sales on the back of demonetization.
New launches dried up in Delhi-NCR, registering a sharp fall of 73 per cent -the second highest after Ahmedabad's 79 per cent. Only 4,800 units were launched in the first six months of the financial year. About 70 per cent of them were below Rs 25 lakh, signaling a shift towards affordable housing.
According to Knight Frank India executive director Ghulam Zia,
NCR housing market is passing through its worst phase. There seems no end to it.The fall in launches were due to slowdown in demand and builders' focus on completing existing projects due to the new Real Estate (Regulation and Development) Act (RERA).
The Act passed last year seeks to bring clarity and fair practices to protect the interests of buyers and impose penalties on errant builders. According to RERA, each state and Union territory will have its own regulator and set of rules to govern the functioning of the regulator.
Going ahead, the GST will bring more down the cost of construction for the developers, but it remains to be seen whether they will pass on the benefit to the consumers or not.
Zia further said, RERA, on its part, will usher in transparency. Global investors are now looking at the Indian real estate sector as an attractive proposition given the regulatory / policy changes, He added that prices have fallen by 20 per cent in Delhi-NCR in the last 18 months and rates are likely to fall further or remain stable in the short-term.
Zia also advised investors to refrain from buying a house, not buy a house if you are an investor. If there is a need for a home you can buy. You sell only if you are in distress, which developers are.
The 'India Real Estate - Residential and Office' report for January-June 2017 tracked the realty sector's performance in NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata,Pune and Ahmedabad. The report said sales across these cities hit a seven-year low ,during the six months at 1,20,755 units -down per cent as compared to the corresponding period of the previous year.
The region has the highest amount of unsold property-- a staggering 1.8 lakh units-that is expected to take developers four-and-a-half years to sell.
Only 17,188 units were sold in the first half of 2017, compared to 23,092 units in H1 2016. However, housing sales improved by two per cent compared to the previous six months, which saw the lowest half-yearly sales on the back of demonetization.
New launches dried up in Delhi-NCR, registering a sharp fall of 73 per cent -the second highest after Ahmedabad's 79 per cent. Only 4,800 units were launched in the first six months of the financial year. About 70 per cent of them were below Rs 25 lakh, signaling a shift towards affordable housing.
According to Knight Frank India executive director Ghulam Zia,
NCR housing market is passing through its worst phase. There seems no end to it.The fall in launches were due to slowdown in demand and builders' focus on completing existing projects due to the new Real Estate (Regulation and Development) Act (RERA).
The Act passed last year seeks to bring clarity and fair practices to protect the interests of buyers and impose penalties on errant builders. According to RERA, each state and Union territory will have its own regulator and set of rules to govern the functioning of the regulator.
Going ahead, the GST will bring more down the cost of construction for the developers, but it remains to be seen whether they will pass on the benefit to the consumers or not.
Zia further said, RERA, on its part, will usher in transparency. Global investors are now looking at the Indian real estate sector as an attractive proposition given the regulatory / policy changes, He added that prices have fallen by 20 per cent in Delhi-NCR in the last 18 months and rates are likely to fall further or remain stable in the short-term.
Zia also advised investors to refrain from buying a house, not buy a house if you are an investor. If there is a need for a home you can buy. You sell only if you are in distress, which developers are.
The 'India Real Estate - Residential and Office' report for January-June 2017 tracked the realty sector's performance in NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata,Pune and Ahmedabad. The report said sales across these cities hit a seven-year low ,during the six months at 1,20,755 units -down per cent as compared to the corresponding period of the previous year.
New launches, too, hit a seven-year low, crashing 41per cent year-on-year to 62,738 units during the period under review. The decline was 9 per cent compared to the demonetization period of H2-2016 when 68,702 units were launched.
10)Kerala govt to invest Rs 50,000 cr on infra projects.(Macro)
The Kerala government is investing about Rs 50,000 crore on infrastructure projects this year to enhance job opportunities for the youth, according to state Finance Minister Thomas Issac.He observed, noting that about 40 per cent of the investment has already been declared, he said the proposed investment is huge for a small state like Kerala.
He further said that he does not go into how we are financing. It's going to take place. It will change Kerala's profile. Issac, who was speaking at a seminar on urbanization organized by a Left-affiliated outfit.
Observing that Kerala is moving towards a "stationary population growth" (without substantial rise), he said the state has provided around 15 lakh houses and that another six lakh houses would be built as part of universal housing.
He further informed that all the class rooms (about 40,000) in the state are going to be digitalized to provide best education to the poor. The state government is also making huge investment in healthcare. He added, the state government is making the Centre's health insurance scheme RSBY universal by paying premium and the beneficiaries would get free treatment for various life style diseases.
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