Thursday, June 8, 2017

Home launches in Pune fell 11%: Report


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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