Gurugram only city to witness improvement in launches and sales in 2017: PropTiger report


Gurugram was the only city to witness improvement in both, launches and sales in 2017, as the top nine cities in India struggled with the impact of the Real Estate (Regulation and Development) Act, according to PropTiger.com’s Realty Decoded Report

Gurugram was the only city to witness improvement, both, in new launches and sales, by 55 per cent and 27 per cent, respectively, in 2017, according to the ‘Realty Decoded Report’ for Calendar Year (CY) 2017 by PropTiger.com, a part of Elara Technologies Pte Ltd, which also owns Housing.com and Makaan.com.

Due to the continued impact of the Real Estate (Regulation and Development) Act (RERA), total new launches across the top nine cities of India, dropped by 56 per cent in Q4 CY17, with the biggest drop seen in Pune, Ahmedabad and Kolkata, says the report. The study covered nine key Indian cities of Mumbai, Pune, Noida, Gurugram, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.

  • Gurugram was the only city to witness both, higher launches and sales in CY17.
  • Overall, total new launches dropped by 43 per cent y-o-y in CY17.
  • Total sales declined by 17 per cent in CY17.

 

LaunchesSales
City20162017% Change20162017% Change
Ahmedabad19,5137,634-61%18,00012,000-33%
Bengaluru33,91912,749-62%41,00031,500-23%
Chennai15,1707,235-52%16,00015,500-3%
Gurugram^9,08914,12955%11,00014,00027%
Hyderabad26,89515,916-41%20,50021,0002%
Kolkata20,8209,679-54%17,00014,500-15%
Mumbai**80,25863,871-20%67,00060,000-10%
Noida*17,8277,525-58%23,00016,000-30%
Pune65,25724,835-62%50,00034,000-32%
TOTAL2,88,7481,63,573-43%2,63,5002,18,500-17%

Source: PropTiger DataLabs

Notes: * Noida includes Greater Noida and Yamuna Expressway; ** Mumbai includes Navi Mumbai and Thane; ^ Gurugram includes Bhiwadi, Dharuhera and Sohna; Analysis includes apartments and villas across the regions.

See also: New home launches plunge 78 per cent in 2017, from 2010 peaks: Knight Frank survey

 

According to the report, overall sales in the top nine cities declined by 17 per cent in CY17, majorly due to the drop in new launches. However, sales in Bengaluru, Chennai, Gurugram, Hyderabad and Noida improved in Q4 CY17. On an annual basis, cities such as Hyderabad, Chennai, Mumbai and Kolkata, performed better than the national average in terms of sales.

 

LaunchesSales
CityQ4 CY16Q4 CY17% ChangeQ4 CY16Q4 CY17% Change
Ahmedabad2,111520-75%3,0242,686-11%
Bengaluru7,1833,181-56%7,4268,28712%
Chennai2,0751,294-38%2,9913,35312%
Gurugram^1,8171,8361%1,1664,160257%
Hyderabad7,1904,410-39%4,1414,85617%
Kolkata5,9002,240-62%4,8944,045-17%
Mumbai**14,20811,017-22%13,36110,616-21%
Noida*1,779867-51%3,7754,0918%
Pune20,0082,060-90%11,7505,993-49%
TOTAL62,27127,425-56%52,52848,087-8%

Source: PropTiger DataLabs

Notes: * Noida includes Greater Noida and Yamuna Expressway; ** Mumbai includes Navi Mumbai and Thane; ^ Gurugram includes Bhiwadi, Dharuhera and Sohna; Analysis includes apartments and villas across the regions.

 

Commenting on the report, Ankur Dhawan, chief investment officer, PropTiger.com said: “2017 was a year of reform for the Indian real estate sector, with the roll-out of game-changing policies, such as the Goods and Services Tax (GST) and RERA. The improvement in unit sales exhibited by many cities in the last quarter of 2017, offers a preview of what the near future has in store. We are confident that new standards of delivery, accountability and transparency, will further give a boost to the residential real estate market in 2018.”

 

Other key highlights of the report

  • Significant reduction in new launches was seen in Pune, Ahmedabad and Kolkata in Q4 CY17. Mumbai alone contributed close to 40 per cent of new launches in Q4 CY17.
  • The drop in sales in 2017, was majorly due to a drop in new launches. 32 per cent of sales in 2016 was contributed by projects launched in 2016 itself. This ratio came down to 24 per cent in 2017.
  • Reduction in new launches and sustenance sales improved the situation on unsold units, which came down by seven per cent across the nine cities
  • Mumbai and Pune contributed nearly four lakh units to the total unsold units, followed by Bengaluru and Noida.

 

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