Drop in sales in 2017 was majorly due to a drop in new launches. 32% of sales in 2016 was contributed by projects launched in 2016 itself.
While new residential launches dropped by 43 percent year-on-year in the calendar year 2017, total sales declined by 17 percent across nine major cities across the country due to drop in the number of new launches and introduction of a slew of regulatory reforms, says a report titled Realty Decoded Report by PropTiger.
From sales of 2,63,500 units in 2016, the figure declined to 2,18,500 units in Gurgaon, Noida, Mumbai, Bengaluru, Chennai, Kolkata, Pune, Hyderabad and Ahmedabad, says the report, adding launches fell from 2,88,748 units in 2016 to 1,63,573 units in 2017.
According to the report, overall sales in the top 9 cities declined by 17 per cent in CY 2017, majorly due to the drop in new launches. However, sales in Bengaluru, Chennai, Gurugram, Hyderabad and Noida improved in the fourth quarter of CY’17. On an annual basis cities such as Hyderabad, Chennai, Mumbai and Kolkata performed better than the national average in terms of sales.
Drop in sales in 2017 was majorly due to a drop in new launches. 32% of sales in 2016 was contributed by projects launched in 2016 itself. This ratio came down to 24 percent in 2017.
Reduction in new launches and sustenance sales improved the situation on unsold units, which came down by 7 percent across nine cities.
Mumbai and Pune contributed almost 4 lakh units to total unsold units, followed by Bengaluru and Noida.
As per the report, Gurugram is the only city to witness improvement, both in new launches and sales by 55 percent and 27 percent respectively, in 2017. Due to the continued impact of RERA, total new launches across top-9 cities of India dropped by 56 percent in Q4 CY’17, with the biggest drop seen in Pune, Ahmedabad and Kolkata.
“2017 was a year of reform for the Indian real estate sector with the roll-out of game-changing policies such as GST and RERA. The improvement in unit sales exhibited by many cities in the last quarter of 2017 offers a preview of what the near future has in store. We are confident that new standards of delivery, accountability and transparency will further give a boost to the residential real estate market in 2018,” said Ankur Dhawan, Chief Investment Officer, PropTiger.com.Significant reduction in new launches was seen in Pune, Ahmedabad and Kolkata in Q4 CY’17. Mumbai alone contributed close to 40 per cent of new launches in Q4 CY’17, the report added