Moneycontrol
Jan 11, 2017 04:36 PM IST | Source: PTI

Kolkata housing sales dropped 20% in H2'16: Knight Frank

Chief economist of Knight Frank India Samantak Das said that the decline had been mainly due to a halt in cash transactions post-demonetisation on purchase of properties.


Housing sales in the metropolis dropped 20 percent during the second half of 2016 (July-Dec) as compared to the year-ago period, global property consultant Knight Frank said in a research report.


The city had also witnessed a eight percent dip in new launches of residential housing projects in the second half of 2016, it said.


Chief economist of Knight Frank India Samantak Das said that the decline had been mainly due to a halt in cash transactions post-demonetisation on purchase of properties.


He said that the other reason was that buyers were expecting a drop in interest rates, which was actually happening at the time.


The weighted average price remained stagnant in the second half, indicating that the market had almost come to a standstill.


However, in the first half of 2016, the Kolkata market remained relatively stable with expectations of improvement in the second half, the report said.


He said that the demonetisation announcement changed the market scenario in the second half of 2016 leading developers and buyers to refrain from making any property related decisions.

Das said that decline in Kolkata was lower than other cities like Mumbai and Bengaluru.

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