Demonetisation, Real Estate (Development & Regulation) Act, or Rera, and the GST have impacted the sales and cashflows of developers, giving a spurt in consolidation in the sector.
About 94,000 units were launched in the top seven cities of the country during the 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 per cent 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 8 per cent between Q3 2016 and Q3 2017. This decline was primarily due to restricted new launches amidst the green shoots of sales recovery.