With the real estate market beginning to adjust to various reforms like demonetisation, GST and RERA, most Indian metros witnessed recovery with sales improving, while property prices corrected or maintained status-quo, a survey said.
According to the survey by property portal 99acres.com, most of the metros saw average property prices either dipping or remaining flat, while overall sales improved in a few markets.
The sales volume witnessed growth in cities such as Pune, Mumbai, and Bengaluru on the back of price corrections.
While Hyderabad and Kolkata saw rentals increasing by 4 per cent each during the October-December 2017 quarter as compared to the same period in 2016, Bengaluru and Mumbai recorded 3 per cent hike.
The report said the inventory-heavy markets of Delhi NCR and Mumbai witnessed corrections in some popular housing pockets of Gurgaon, Noida and Navi Mumbai.
“The real estate industry underwent some of the most radical reforms and avant-garde policy changes in 2017. Residential demand, sales, and supply took a hit on the back of uncertainties surrounding RERA and GST.
“While the first half of 2017 was a testimony to plummeting numbers, the second half saw stakeholders in a contemplative mode,” 99acres.com Chief Business Officer Narasimha Jayakumar said.
He said the buyers waited for RERA to unfurl its full impact on property prices and builders were seen acclimatising to the new norms.
“RERA transformed the market from uncertain to mended buyer confidence during the quarter. Enquiries and sales improved marginally across cities. The premium market also saw enhanced traction in cities such as Bengaluru and Pune, suggesting an impending revival. With improving clarity on GST, sales are expected to revive across categories and budget segments,” Jayakumar said.
The report further pointed out that price growth remained restricted across metros with inventory-heavy markets of Delhi NCR and Mumbai witnessing corrections in some popular housing pockets.
“Prices may further dip in luxury and ultra-luxury segments in 2018 because of low buyer appetite for such projects. Other categories are, however, unlikely to see any major correction in January-March 2018,” the report said.
On the supply side, the report said the saleable supply in the primary market appears low on account of slow-paced registrations under RERA.
“Fresh inventory levels may soar in the ensuing quarters owing to increased registrations and new launches on the back of clarity in the norms,” it said.