During the year 2017, prices of real estate homes declined due to the ban on sale, real estate regulation implementation act (RERA) and commodity and service tax (GST). According to the Knight Frank report, all cities have registered a decline of minimum 3 percent. The highest in Pune was 7% and Mumbai’s 5% decreased.
For the last 6 years NCR property prices have already fallen, they have also declined by 2 percent. The main reason for this decline is the decrease in demand. Bangalore, Delhi NCR and Chennai have declined by 26 percent, 6 percent and 20 percent.
However, a slight increase was seen in the real estate markets of Mumbai and Pune. According to the reports, as RERA has been implemented in Maharashtra correctly, due to this, Mumbai and Maharashtra have increased by 3 and 5 percent. In the new launch due to slow sales, 56 per cent decreased in Delhi NCR and Bangalore in Bengaluru. It badly affected the real estate sector.
Knight Frank India’s Property Consultant said – In the NCR, the decline of 6 percent was recorded in 37,853 units. The price has dropped down to 2 percent. It has also been reported in the new launches that increased 53 percent in 2016 and 83 percent in 2017. This proves that developers are focusing on budget homes of 50 million. The increase in Affordable House has been done because it is very demanding in the people and subsidy under the Prime Minister’s Housing Scheme.
Frank India President Shishir Baijal said that in 2010 the condition of real estate was very bad. It seems that the effect of the demonetisation has decreased over time. In the markets where RERA has matured, developers re-launched their project at attractive prices. Because of which the sell grew in 2017. Apart from this, where 480 lakh apartments were launched in the year 2010, the number has decreased to 1.03 lakh in 2017