Real estate saw lowest launches, sales in 2016: Knight Frank

Moneycontrol Bureau The government's move on currency ban has taken the sheen out of residential sector, reveals a Knight Frank India's half-yearly report - India Real Estate.The report suggests that 2016 ended with lowest launches and sales since 2010.In the second half of 2016, sales volume fell by 23 percent, while new launched nosedived by 46 percent, the report stated.In the last quarter of calendar year 2016 (Oct-Dec), sales volume dropped by 44 percent on year whereas new launches fell by a massive 61 percent on year."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.Going forward, 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. Also, whether buyers  capitalize the opportunity of various reforms and change their status quo position of wait and watch.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 revival of the industry.