Slowdown in new home launches due to the implementation of new real estate regulations and reduction in unsold inventory would lead to a steep rise in capital values of residential properties across all cities in the short term, property consultant firm JLL India said.
As per the report, ‘2017: The Inflection Point of Indian Real Estate’, by industry body Confederation of Indian Industry (CII), and JLL, new launches across major cities have declined since 2014.
In the first quarter of calendar year 2017, nearly 30,000 housing units were launched in the top seven cities including Mumbai, Delhi-National Capital Region (NCR), Bengaluru and Chennai as against 70,000 units in 2014.
Residential markets were hit by the demonetization drive with a slowdown in sales in the first quarter of 2017, though it rose by 11.8% compared to the previous quarter, according to the report. Over 30,000 housing units were sold in the first three months of the year.
In the quarter ended March 30, over 30,000 housing units were sold.
“Developers have already started aligning businesses to RERA guidelines and brokers will need to follow suit, else both are likely to fall by the wayside,” said Ramesh Nair, chief executive of JLL India.