The government's move on currency ban has taken the sheen out of the residential sector, reveals a Knight Frank India half-yearly report - India Real Estate.
The report suggests 2016 ended with lowest launches and sales since 2010.
In the second half of 2016, sales volume fell by 23 percent, while new launches nosedived 46 percent, the report stated.
Sales volumes during the last quarter of calendar 2016 (Oct-Dec) dropped 44 percent year-on-year (YoY) whereas new launches fell by a massive 61 percent YoY.
"Demonetisation move pulled down the last quarter sales across all cities," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
"The fall in Q4 was intense, H2 2016 ended below H2 2015. 2016 ends at launches and sales being lowest since global financial crisis," he added.
Uncertainty is likely to continue in the next quarter and the company will keep a close eye on how developers recalibrate their business to the changing environment. Whether buyers capitalise the opportunity of various reforms and change their wait-and-watch stance will also be monitored.
In 2017, lower home loan interest rate, RERA and GST, likely fiscal benefits for taxpayers in the Union Budget, enforcement of Benami Transactions (Prohibition) Amendment Act and remonetisation are likely to infuse the feel-good factor which is important for the revival of the industry.