New home launches in nine cities across the country dropped by nearly 18% on year during the fourth quarter (Oct-Dec) of Calendar 2017 to 13,666 units, according to a report by PropEquity. Lack of new launches was due to developers focussing on compliances with RERA and implementation of GST. According to the report, which covered Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai, capital values including resale was marginally down. Weighted average prices in the quarter remained at Rs 6,634 per square feet from Rs 6,683 per square feet a year ago.
“2018 should hold as a stabilization year for the sector since now both developers and buyers are more attuned to this changed regulatory scenario. The implementation of RERA is encouraging developers to focus on the completion of existing projects. Consumer sentiment too, has greatly improved,” the report quoted Samir Jasuja, CEO, PropEquity as saying. The unsold inventory rose 29% on year to 586,446 units, while it was down 3% from the previous quarter due to lower new launches and developers focusing on clearing their existing unsold inventories which is at the finishing stage.