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.

 

Launches Sales
City 2016 2017 % Change 2016 2017 % Change
Ahmedabad 19,513 7,634 -61% 18,000 12,000 -33%
Bengaluru 33,919 12,749 -62% 41,000 31,500 -23%
Chennai 15,170 7,235 -52% 16,000 15,500 -3%
Gurugram^ 9,089 14,129 55% 11,000 14,000 27%
Hyderabad 26,895 15,916 -41% 20,500 21,000 2%
Kolkata 20,820 9,679 -54% 17,000 14,500 -15%
Mumbai** 80,258 63,871 -20% 67,000 60,000 -10%
Noida* 17,827 7,525 -58% 23,000 16,000 -30%
Pune 65,257 24,835 -62% 50,000 34,000 -32%
TOTAL 2,88,748 1,63,573 -43% 2,63,500 2,18,500 -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.

 

Launches Sales
City Q4 CY16 Q4 CY17 % Change Q4 CY16 Q4 CY17 % Change
Ahmedabad 2,111 520 -75% 3,024 2,686 -11%
Bengaluru 7,183 3,181 -56% 7,426 8,287 12%
Chennai 2,075 1,294 -38% 2,991 3,353 12%
Gurugram^ 1,817 1,836 1% 1,166 4,160 257%
Hyderabad 7,190 4,410 -39% 4,141 4,856 17%
Kolkata 5,900 2,240 -62% 4,894 4,045 -17%
Mumbai** 14,208 11,017 -22% 13,361 10,616 -21%
Noida* 1,779 867 -51% 3,775 4,091 8%
Pune 20,008 2,060 -90% 11,750 5,993 -49%
TOTAL 62,271 27,425 -56% 52,528 48,087 -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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