Nifty99000 100%

Sensex99000 100%

Article rating: 4.0
Article rating: 3.7
Article rating: 5.0
Article rating: 4.0
Article rating: 4.5
Article rating: 3.8
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Unsold residential inventories affecting real estate industry: Report

Author: IANS/Friday, January 12, 2018/Categories: Real Estate

Unsold residential inventories affecting real estate industry: Report

Kolkata - The de-growth in residential supply has been getting worse and sales of units were down by 7% in 2017, said a report.

"Despite the massive need for housing that India is facing, huge unsold inventories caused by a prolonged focus of the developers on the wrong apartment ticket sizes have brought the residential real estate industry to its knees," said the report - India Real Estate for the period July-December 2017, prepared by Knight Frank India.

It said while the "de-growth in residential supply has been getting progressively worse", that of demand has been relatively muted.

"Down 7% year-on-year, approximately 0.23 million units were sold during 2017 compared to a little over 0.1 million units launched," it added. 

However, tumultuous events over the past 14 months that saw the government aggressively push a culture of transparency through measures such as demonetisation, Goods and Services Tax (GST) and the Real Estate (Regulation and Development) Act, 2017 (RERA) have irrevocably altered the course of the industry, it said.

On the Kolkata market, Samantak Das, Chief Economist & National Director - Research, Knight Frank India, said: "Even as impact of demonetisation tapers off pan-India, Kolkata's residential sector is reeling under the pressure of slowdown in real estate activities as developers focus on realignment of operations post the rollout of the Goods and Services Tax (GST) and weakening sales volume."

According to him, launches dwindled by a staggering 47% in 2017 and sales volumes in the end-user driven market witnessed a sluggish movement courtesy waning buyers' confidence post demonetisation and other structural reforms.

"The delay in the setting up of the Housing Industry Regulation Bill (HIRA) has further pushed buyers in the wait and watch mode," he added.

Print Rate this article:
No rating

Number of views (199)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free