Anuj Puri, Chairman, ANAROCK Property Consultants
Green shoots of improvement in new launches; 100% month-on-month rise in new launch absorption levels
2017 has been an action-packed year, not just for the real estate sector but for the entire nation.
While the structural changes and policy reforms (demonetization, RERA and GST) shook up the economy, it imbibed financial discipline, accountability and transparency across various sectors.
As per the statistics released by Economic Survey, the Indian economy is expected to grow at 7 to 7.5% in 2018-19, eclipsing China to become the fastest growing economy.
In 2017, the performance of Indian residential real estate was lacklustre due to the sector’s transition from an unorganized to an organized one, amidst changing regulatory environment.
The big-picture reforms are making the market buyer-friendly and further attracting global investors to consider India as one of the preferred destinations for real estate investments.
With two months into 2018, ANAROCK Property Consultant’s research report presents some of the trends reflecting the state of residential real estate market across the country’s top seven major metropolitan cities.
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: