New Delhi - Sales in the residential real estate segment fell 15% on a year-on-year basis in 2017 across seven major cities in India, says a report.
The number of launches also declined around 50% in 2017, said the "Anarock Residential Report 2017".
"A series of highly disruptive reforms, coupled with mounting unsold inventory and stringent RERA (Real Estate Regulatory Act) norms kept developers on the back foot in 2017," the report said.
It added that instead of infusing new supply in the market, "developers focused on executing their under-construction projects in order to remain RERA-compliant and remain relevant in the rebooted market scenario".
Among the metropolitan cities, Chennai recorded the highest fall in sales of around 26% to 13,200 units in 2017, from 17,800 units in 2016, according to the report. Bengaluru, however, witnessed the lowest dip in sales at 2% -- from 43,300 units in 2016 to 42,300 units in 2017.
Sales in the National Capital Region (NCR) declined 22% from 2016 to 37,700 units in 2017, it said.
"A spate of policy reforms and structural changes literally crippled the sector," said Anuj Puri, Chairman, Anarock Property Consultants.
"With only end-users left to drive the market and investors more or less evaporating completely, developers throttled back severely on new launches to allow the market more scope to absorb the already staggering unsold inventory," he added.