By Accommodation Times Bureau
Residential real estate sales, is recording improvement and showing that it has come out of the shadows of demonetization sufferings. However, it is yet to touch the pre-demonetization levels.
A Knight Frank India report is showing the sales ;of residential properties across the top eight cities during 2017’s first half ; is down 11% on year, but note it down that it has risen by the same proportion when compared to the July-December period that was marked by the demonetization shock.
Affordable housing is outstripping other segments, following the government’s urge of Housing For All. Sales volumes on sequential basis has risen because of the discounts on ready inventory and improved sentiments among buyers because of the RERA.
The first half of 2017 has shown the revival of affordable housing across the country with 71% of the launches under the Rs 50 lakh price segment up from 52% during the same period last year.
Buyers were showing signs of extreme caution due to the government’s demonetization announcement, while real estate developers also abstained themselves from announcing any new launches during this period. However the market may not soon touch the levels seen three or four years ago, ‘the improvement in sales numbers is robust’, experts said.
“Some of the most path-breaking reforms in independent India came to force in quick succession over a span of a few months. Described by many as the battery of reforms against the black economy in an unorganised sector, brave policy decisions such as demonetisation, the Real Estate (Regulations and Development) Act, 2016, the Benami Transactions (Prohibition) Amendment Act, 2016 and the recently rolled out Goods and Services Tax Act (GST) have time and again pushed the already sluggish residential market to the brink,” said Shishir Baijal, CMD, Knight Frank India.
Sales volume is also down 11% from a year ago and is lowest first-half sales in the past five years. Though its initial signs of improvement ,post demonetization.