Residential Apartment launches across 7 property markets saw an on-year decrease by nearly 50%. Also, sales slipped 15% according to a report by ANAROCK Property Consultants.
The new unit launches recorded in the top 7 cities was around 1.26 lakh as against 2.5 lakh in 2016.
With 48,400 units, Mumbai Metropolitan Region (MMR) apartment contributed the maximum of 38% of fresh apartments supply.
NCR’S contribution was around 18% with 22,200 units, while Bengaluru’s contribution was 13% with 16,000 units and Pune’s was 11% with 13,800 units.
Anuj Puri, Chairman, ANAROCK Property Consultants stated that the sector was crippled because of a spate of policy reforms and structural changes. Simultaneously and consequentially, it transitioned rapidly into a transparent and buyer-friendly one. He also said that “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.”
Some highly disrupted and disturbing reforms, coupled with mounting unsold inventory and stringent and stern RERA norms, stopped the developers from coming out with new projects in 2017.
Thus, It was thus not surprising that instead of infusing new supply in the market, developers focused on executing their under-construction projects in order to remain RERA-compliant and relevant in the rebooted market scenario.
Developers are concentrating on clearing off their unsold inventory before venturing into new projects and this focus has thus led to many ready to move in apartments available and many apartments nearing completion stage, this has helped developers clear much of the existing stock
Due to the presence of significant unsold stock and cautious buyer sentiments, prices across the top 7 cities remained largely range-bound in 2017
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