As there are still some uncertainties regarding Regulation and Development Act, 2016 on real estate, the goods and services tax can create some impact on real estate sectors. It may also rule out the freebies that are offered by several home developers. Hence, it makes the buyers confused.
Due to this lack of indecisiveness amongst home buyers and the scarcity of new home launches, the primary residential sales have been affected hugely. In cities like Noida, Mumbai, Bangalore and Gurgaon, realty sales have been halved in most of the major markets. This property data have been shared by PropEquity, almost a year ago in between January to March.
As per the property data shared by PropEquity, there has been a huge fall in homes or realty sales. This fall is almost 52% in the case of Mumbai and 51% in case of Noida, in between January to March.
The chief executive, Mr. Sameer Jasuja, from PropEquity, shared his opinion on this. He shared that the secondary market still has enough unsold property stock. As, the investors are already selling these stocks to potential buyers at good rates, no sales happening in the primary market.
These unsold stocks in cities like Mumbai, Bangalore, and Pune, has marginally come down, but they are still high. Their levels are 71,988, 108,087 and 112,635 units, respectively.
As per Sameer Jasuja, developers are not launching new home projects and are still focused on old ones. As there are not enough new launches happening, hence it limits the realty sales in the primary market.
There is basically very few launch of upcoming residential projects in Mumbai, Delhi, NCR and mainly in Noida and Gurgaon region. The realty sales have come down to lower levels, with 90% in Noida and 95% in Gurgaon. In most cities, realty prices have either dipped or have risen marginally. In the case of Gurgaon, realty prices have reduced by 78%. Whereas, it has gone up by 0.7% in Noida and 1.22% in Mumbai.
The CEO of ASK Property Investment, Amit Bhagat has said that home buyers are not in a hurry to invest in properties. As they are still worried about the risk, involved with the completion of these realty properties. The developers are still offering them multiple discount offers and freebies options. This is even creating more curiosity and confusion amongst buyers regarding the home purchase.
As per CRISIL, this demand for realty purchase has been muted for the time being. Though, it is expected to remain strong, if low ticket sizes are provided along with housing for all initiative projects from the government.