Residential Property Prices Dropped By 15% In Mumbai, NCR, Pune & Kolkata
Residential property prices have dropped by up to 15 per cent in Mumbai, NCR, Pune and Kolkata in the first half of 2018 despite government incentives and reduced prices as developers battle with unsold inventory that will take another three years to clear up, Knight Frank said.
Chairman and Managing Director, Knight Frank India, said the turbulent times that started with demonetisation and continued with RERA and GST have impacted the residential market.
While the launch of new housing units jumped 46 per cent over the first half of 2017, sales saw a growth of just 3 per cent at 1,24,288 units. Unsold inventory in the top seven cities still stands at close to five lakh units.
Hyderabad residential market saw a bounce-back in launches during the first half (H1) of 2018 as against H1 of 2017. The sector reported growth of over 44 per cent, with the majority of new launches in the Rs 75 lakh to Rs 1 crore category.
The western part of Hyderabad, which caters to the IT hub of the growing metropolis, continues to be the biggest market accounting for 71 per cent of new launches, according to Knight Frank.
Amidst a price correction in most cities, Hyderabad recorded an appreciation in prices. A lack of launches, steady demand and a shortage of ready-to-move-in houses have pushed up prices by about 8 per cent.
Sales crossed the 8,000 mark for the first time post-bifurcation of the state about four years ago. The strong performance of the office market also helped lift the residential segment.
The report has identified improved infrastructure and political stability as major catalysts for the growth of the realty sector.
Director, Hyderabad, Knight Frank, said the worst seems to be behind us, and the real estate market of Hyderabad is expected to witness new benchmarks. Sluggish residential launches until now, due to policy issues, is soon set to transform with the announcement of several new projects.
Source Link- https://www.thehindubusinessline.com/