He said there is a lot of misunderstanding about GST among buyers and the government.
It is a harsh measure (the authority probing developers). Almost All developers are passing on the benefit to buyers. There should be due time given to developers to understand the new law. And this should not become another tool to harass developers.”," said Shailesh Puranik, managing director at Puraniks, a Mumbai based developer.
Demonetisation, Real Estate
(Development & Regulation) Act or Rera and GST have impacted the sales and cash flows of developers, giving a spurt in consolidation in the sector.
About 94,000 units were launched in top seven cities of the country between nine months of 2017, which is a drop of 55.7 per cent from the same period in 2016. In the corresponding period last year, 2,12,000 residential units were launched, according to Anarock Property Consultants.
However, the last quarter of 2017 looks encouraging - in the first two months of this quarter, around 18,000 units were launched, which is around 90% of the new launches in Q3 2017, Anarock data said.
The sales of residential units, nationally, also declined by 29.3 per cent. Only 1,59,000 units were sold during first nine months of the current calendar year, compared with 2,25,000 in the corresponding period of 2016.
Owing to this, unsold units in India declined by eight per cent between Q3 2016 and Q3 2017. This decline was primarily due to restricted new launches amidst the green shoots of sales recovery.