From January to May this year, 1.10 lakh homes sold in 42 major cities.This figure is 41% less than last year the number of houses sold during this time. Proposequity says that after the demonetisation, property demand decreased, which has had a bad effect on the real estate sector. 1.87 lakh homes were sold between January and May last year.
The real estate market has been facing slowdown from many years. This is delaying the projects and filing a lawsuit against the client builders. The demonetisation on the housing sector also had a bad effect. However, the reduction in interest rates and declaration of government’s concessions is slowly recovering in the Affordable Segment.
Sameer Jasua, founder and CEO of PropEquity said, “After the ban, the market is going slow, so the sale of houses between January to May is low.” During this period, the number of new launches has decreased by 62 percent to 70,450,while compared to last year’s 1,85,820 new houses. PropQquity online subscription is based real estate data and analytics platform.
Jasuja said, “In the first five months of this year, there was a decrease in the residual launch because many developers across the country have postponed the project launch. These projects were discontinued due to slowness in the market after the note-offs. ‘ Jasuja said that the housing sector is going through a change after the ban on bondage. Transactions in this sector have come down significantly.
He explained that the implementation of the Real Estate (Development and Development Act) will reduce the problem of project delivery. They said that the builders are trying to complete the projects as soon as possible to avoid the penalties imposed under this law.
Jasuja said, “The builders whose track record is good, whose financial condition is strong and on which there is less debt, their performance will be good.” Jasuja said that for some more time the housing market will remain slow. He said that after getting rid of GST related complications and settlement of new real estate law, recovery in market should be expected. Real estate law has come into effect from 1st May. In this law it has been said that the builders will have to register for all new projects with the State Regulators.
Last week, Urban Development Minister Venkaiah Naidu had said that after the GST was implemented, the prices of the houses would be reduced.