The government is seriously thinking of bringing real estate under the purview of Goods and Services -min
The supply of new residential properties declined drastically during 2017 as realtors grappled with Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST). Also in the first quarter of calendar 2017, market was affected by the after effects of demonetization. As a result, cumulative launch of residential units in eight cities — Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Mumbai, Pune, Hyderabad and Kolkata — dipped by 35% to 73,956 units in 2017 from 1,13,044 units in the previous year. Ahmedabad real estate market witnessed 52% decline, the steepest in percentage terms among top eight cities. Launches of residential units in Hyderabad, Bengaluru, Kolkata and Chennai dropped by 51%, 47% 45% and 44%, respectively.
However, silver lining among dark clouds is affordable housing segment which has seen a growth of 6% in new launches. A total 31,241 units were launched in affordable segment in top eight cities cumulatively as against 29,410 units in 2016.
Despite the sharp fall in 2017, experts don’t expect the market to recover soon. Decline may continue, at least in the first half the calendar 2018 and may start recovering at a slow pace as the year draws to a close. The only silver lining is the easy availability of home loans at attractive rate of interest which may help to arrest the decline much earlier than expected.