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  1. Post note ban, realty sees lowest sales since 2010: Knight Frank

Post note ban, realty sees lowest sales since 2010: Knight Frank

Calendar year 2016 ended with the lowest launches and sales witnessed in the residential real estate segment since 2010 and the demonetisation effect has been acutely felt by the sector, a Knight Frank India report released on Tuesday revealed.

By: | Mumbai | Published: January 11, 2017 6:26 AM
The global property consultancy firm has pegged the notional revenue loss to real estate industry at Rs 22,600 crore as a result of demonetisation. (Reuters) The global property consultancy firm has pegged the notional revenue loss to real estate industry at Rs 22,600 crore as a result of demonetisation. (Reuters)

Calendar year 2016 ended with the lowest launches and sales witnessed in the residential real estate segment since 2010 and the demonetisation effect has been acutely felt by the sector, a Knight Frank India report released on Tuesday revealed.

The global property consultancy firm has pegged the notional revenue loss to real estate industry at Rs 22,600 crore as a result of demonetisation.

As expected, for the six months of July-December 2016, the year-on-year sales volume and new launches declined by 23% and 46% respectively across eight Indian cities of Mumbai, Pune, NCR, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad. The July-December 2016 period recorded launch of 68,702 units down from 1.27 lakh units during July-December 2015. Meanwhile, the sales fell to 1.09 lakh units against 1.41 lakh units last year. The majority of the impact was felt in the three months of October-November, the report said.

The national capital region, which comprises Delhi and its suburbs remained the most affected market and in fact witnessed a decline in demand and supply by 29% and 73% respectively. Mumbai Metropolitan Region too, which was in a recovery mode in the first six months of 2016 lost its momentum and the launches and sales plummeted by 53% and 26% respectively. FE reported on January 9, that sales in Mumbai’s property market have plunged to a six-year low with the demonetisation impact.

With a decline in launches, the unsold units stock across India remained flat in the six months ended December, witnessing a decline of a mere 3% at 6.7 lakh units. The unsold units in MMR declined 14% y-o-y to 1.55 lakh units, while in NCR the unsold stock declined marginally by 3.5% to 1.93 lakh units.

Shishir Baijal, chairman and managing director, Knight Frank India said that the fall in Q4 was intense, as a result of which H22016 ended below H22015. “The year 2016 ends at launches and sales being lowest since global financial crisis. Uncertainty is likely to continue in the next quarter.”

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