Anuj Puri, Chairman – ANAROCK Property Consultants

2017 was an unprecedentedly rough one for the Indian real estate sector with the implementation of RERA, GST, demonetization and several other reforms and initiatives.

The residential market was beset by more policy changes in this single year than in the two preceding decades. The resulting distress signals that this notoriously change-averse sector sent out were loud, though not necessarily clear. However, there were also positive vibrations.

Tuning Into Residential Real Estate’s Distress Signals In 2017

In 2017, the residential property sector saw:

  • The lowest rate of new project launches in last five years:

2017 witnessed a significant fall in new launches across top 7 cities, which declined by around 45-50% compared to the previous year. While in 2016 the top 7 cities added around 2.4 lakh units, new launches shrunk to only 1.25 lakh units in 2017.

  • Property prices either stagnating or correcting:

In 2017, due to a massive burden of unsold stock and low demand,

Anuj Puri, Chairman – ANAROCK Property Consultants

The year 2017 has not exactly lived up to the expectations of the residential property sector. RERA has been deployed, but as of today, only 18 states and 7 Union territories have notified RERA, while 10 states are yet to notify it.

While RERA has certainly already made its expected effects felt in states like Maharashtra – which includes very important markets like Mumbai and Pune – it has not yet extended its full influence over parts of the country where RERA it is probably needed the most.

Though Haryana and UP have notified RERA, they are yet to set up the portal via which developers can upload their applications for registration of their projects. The web portal is also critical for buyers, as this is where they can check the details of projects. Also, these two states have come under heavy criticism for diluting the Centre’s RERA norms.