8/06/2017
PUNE: Imminent
implementation of the Real Estate Regulatory Act (RERA), demonetization and
the looming goods and service tax (GST) regime took the sheen out of Pune's
residential real estate
market
as new unit launches fell by 5.48% in the quarter ended March 2017 as compared
to the same period a year ago.
In the demonetisation quarter, the new units launched fell by
16% compared to the same quarter a year ago - cumulatively bringing the new
launches down by 11% in the second half of FY 2017.
During January to March 2017, a report by real estate
consultancy Cushman and Wakefield said, the number of units launched in Pune
were 4,273 versus 4,521 a year ago. Only 24 projects were launched in the city
between January and March 2017, against 33 during the same period a year ago.
The impact of demonetisation and RERA on the psyche of
developers can be gauged from the fact that despite the fall in second half of
FY2017, overall real estate project launches in FY2017 were still higher than that
in FY2016.
Overall, Pune bucked the trend with 4% more project launches
in FY2017 with 18,438 units launched. This placed Pune in the third position
among the top eight cities in terms of new project launches in the last
financial year.
The report further stated that fresh launches as well as
prices are likely to remain restricted over the next two-three quarters as
developers grapple with new rules like RERA, GST, and unsold inventory."There
are mixed views in the market in terms of the impact of RERA on real estate
prices. Developers cannot commence sales until all project approvals are
obtained. However, it is pertinent to note that the sector continues to reel
under the pressure of inventory backlog and slow sales in most cities. We do
not anticipate a price rise for the next 2-3 quarters. A significant upward
trend in prices can commence only if the current stock gets cleared driven by
revival in buyer sentiments," said Cushman and Wakefield in its survey
report.
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