Lesser new home launches, says report
Posted on: 31/Jan/2018 2:27:49 PM
A report released by a leading research and analytics firm has said that new home launches dipped 12 pct across top 9 cities in the fourth quarter of 2017 from 15,593 units to 13,666 units. The lack of new launches was majorly attributed due to developers focusing on compliances with RERA and implementation of GST. Also, as a measure of the slowdown in the real estate prices stabilising, capital values including resale saw negligible correction if any.
Speaking about this, a senior executive at the firm said, 2018 should hold as a stabilisation year for the sector since now both developers and buyers are more attuned to this changed regulatory scenario. The implementation of RERA is encouraging developers to focus on the completion of existing projects. Consumer sentiment too, has greatly improved. Many buyers, sellers, banks and private equity investors are waiting for the budget announcement as they expect some major positive news from the govt. to boost real estate sector.
Minimal launch activity took place in Chennai during Q4 2017. The developers were more cautious about the launching of new projects as all the approvals has to be received and the project has to be registered in RERA website before launch.
Buyer’s interest was mostly towards properties that were nearing completion where areas like Perambur, Medavakkam and Pallikaranai witnessed some demand.
