News: Home launches reduce by 53% in Jul-Sept on GST & RERA implementation: Report-01.11.2017

Home launches reduce by 53% in Jul-Sept on GST & RERA implementation: Report

 Home launches across the top nine cities in India tanked 53% to 22,115 units in the July to September period this year, against 47,032 units launched in the same period last year due to the implementation of the goods and services tax and delay in implementation of the real estate regulatory Act, according to real estate portal PropTiger.

New home sales also went down by 18% in the September quarter to 44,755 units, from 54,721 in the same period last year.

Ankur Dhawan, chief investment officer, PropTiger.com feels though the last quarter looks sluggish, the long term story for residential market remains strong.

"With effective implementation of RERA, we expect growth of 30 to 40% on year on year basis in sales and new launches in the next quarter," he said.

Share of affordable housing again crossed 50% mark in the September quarter this year. Homes priced in the budget below Rs 50 lakh contributed more than 50% in new launches as well as in sales, showed the report.

Inventory overhang increased to 42 months of unsold stock due to slow sales.

Sales of ready-to-move-in units has shown annual growth rate of 21% year on year, reflecting the increased preference of buyer for these units as they are out of ambit of RERA and GST, according to the report.