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,