Bengaluru Real Estate – Page 2

PRESS RELEASE

Chennai Saw Highest Housing Sales Dip In 2017, Bengaluru Lowest – ANAROCK Report

Unsold inventory decreased by 10% from 8.04 lakh units in Q4 2016 to 7.27 lakh units by Q4 2017

Mumbai, 22 March 2018: Fewer launches, subdued sales and muted property prices defined 2017 for the Indian residential real estate sector, according to a detailed report by ANAROCK Property Consultants.

With an annual decline of almost 50% in new launches and 15% decline in sales across top 7 cities in India, the sector was effectively shattered in 2017.

“A spate of policy reforms and structural changes literally crippled the sector,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “Simultaneously and consequentially, it transitioned rapidly into a transparent and buyer-friendly one. With only end-users left to drive the market and investors more or less evaporating completely, developers throttled back severely on new launches to allow the market more scope to absorb the already staggering unsold inventory.”

2017’s Depressed New Launch Readings

The top 7 cities recorded new unit launches of around 26 lakh in 2017 as opposed to 2.50 lakh in 2016.

Anuj Puri, Chairman – ANAROCK Property Consultants

NCR has witnessed a 3 to 5% decrease in average per-square-foot property prices over the last one year (Q4 2016 – Q3 2017).

See chart below:

Currently, NCR has the maximum number of unsold units among all the top cities in India. An approximate 2 lakh unsold units are stocked up across different cities in the region. Greater Noida has maximum share of unsold inventory, followed by Gurugram.

There are many reasons for the price decrease in NCR. To begin with, excessive delay in project construction and possession has hurt buyers’ sentiments and led to subdued demand. Also, many projects have been stalled due to agitations and litigation issues.

The massive unsold inventory itself has acted as a sentiment suppressant – and finally, while demonetisation, RERA, and GST are potentially positive moves for the industry, they have played a significant role in reduced buyer sentiment, contributing to the price falls.

Prices are likely to remain stagnant for a few more quarters. Factors such as the huge unsold inventory,