What really happened to housing sales in 17% in 9 cities during 2017? Here are details from PropTiger report

Housing sales fell by 15% in Kolkata to 14,500 units in 2017 while bookings dropped by 10% in Mumbai to 60,000 units.

Housing sales dropped 17% in nine major cities during 2017, the News Corp-backed PropTiger said in a report. Sales declined to 2,18,500 units in Gurgaon, Noida, Mumbai, Bengaluru, Chennai, Kolkata, Pune, Hyderabad and Ahmedabad – down from 2,63,500 units in 2016, the report said.

New home launches fell by 43% to 1,63,573 units in 2017, from 2,88,748 units in the previous year.

“Drop in sales in 2017 was majorly due to a drop in new launches. 32% of sales in 2016 was contributed by projects launched in 2016 itself. This ratio came down to 24% in 2017,” the report said.

Gurugram and Hyderabad were the only two cities which witnessed increase in sales, by 27% and 2%, respectively.

The other seven cities saw decline in the range of 3-33%. Ahmedabad saw the maximum decline by 33% to 12,000 units, followed by Pune by 32% to 34,000 units, Noida by 30% to 16,000 units and Bengaluru by 23% to 31,500 units.

Housing sales fell by 15% in Kolkata to 14,500 units in 2017 while bookings dropped by 10% in Mumbai to 60,000 units. Chennai saw a marginal dip of 3% to 15,500 units.

“2017 was a year of reform for the Indian real estate sector with the roll-out of game-changing policies such as the GST and RERA…We are confident that new standards of delivery, accountability and transparency will further give a boost to the residential real estate market in 2018.” the report quoted chief investment officer of proptiger.com Ankur Dhawan as saying.

Reduction in new launches and sustenance sales has improved the situation on unsold units, which has come down by 7% to 7,25,828 across these nine cities. Mumbai and Pune alone contributes around 4 lakh unsold units, followed by Bangalore and Noida.

“There are few hanging issues from 2017 such as patchy implementation of RERA by some states, GST input credit-related issues, bankruptcy of few large developers such as Jaypee, Amrapali, etc. We expect these issues will be resolved by the first half of 2018 and will further give a boost to the real estate market in 2018,” the report said. PropTiger.com is a part of Elara Technologies which also owns Housing.com and Makaan.com.