Housing sales dropped 17% across nine major cities in 2017, Mumbai fell by 10%

Housing sales dropped 17% across nine major cities in 2017, Mumbai fell by 10%
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Housing sales dropped 17 percent during 2017 in nine major cities of the country, including Mumbai, because of demand slowdown and impact of new realty law, according to a report by realty portal PropTiger.

Sales declined to 2,18,500 units last year in nine cities – Gurgaon, Noida, Mumbai, Bengaluru, Chennai, Kolkata, Pune, Hyderabad and Ahmedabad – against 2,63,500 units in 2016, the News Corp-backed PropTiger said in its report.

Launches fell by 43 percent to 1,63,573 units in 2017 from 2,88,748 units in the previous year.

Yesterday, Knight Frank India released its report and reported 7 percent decline in housing sales and 41 percent fall in home launches during last year in eight top cities. Cushman & Wakefield reported 35 percent fall in launches.

“Overall sales in top nine cities only dropped by 17 percent compared to the steep reduction in new launches. Drop in sales is chiefly due to drop in new launches as 32 percent of sales in 2016 was contributed by projects launched in 2016 itself. This ratio came down to 24 percent in 2017,” PropTiger.com, part of Elara Technologies which also owns Housing.com and Makaan.com, said in the report.

Gurgaon and Hyderabad were the only two cities which witnessed increase in sales by 27 percent and 2 per cent respectively. The other seven cities saw a decline in the range of 3 percent to 33 percent.

Commenting on the report, PropTiger.com Chief Investment Officer Ankur Dhawan said: “2017 was a year of reform for the Indian real estate sector with the rollout of game-changing policies such as GST and RERA.”

He said states did not implement the Real Estate (Regulation and Development) Act, which came into force from May last year, on time and hence there was confusion in the market for at least 2 months whether sales are allowed or not.

Dhawan cited example of realty major DLF which did not sell flats from May to November.

As per the report, housing sales in Gurgaon rose by 27 percent to 14,000 units in 2017, while sales in Hyderabad went up marginally by 2 percent to 21,000 units.

Ahmedabad saw the maximum decline by 33 percent to 12,000 units, followed by Pune 32 percent to 34,000 units, Noida 30 percent to 16,000 units and Bengaluru 23 percent to 31,500 units.

Housing sales fell by 15 percent in Kolkata to 14,500 units in 2017 while bookings dropped by 10 percent in Mumbai to 60,000 units. Chennai saw a marginal dip of 3 percent to 15,500 units.

Sharp fall in new launches helped in reduction in the number of unsold housing units in 2017 by 7 percent to 7,25,828 units in these nine cities, of which Mumbai and Pune alone contribute about 4 lakh units.

With PTI inputs