50% drop in housing launches in NCR this Diwali: Report

NOIDA/GURUGRAM: A triple whammy from demonetisation, Rera implementation and GST has hit launch of new residential projects in the real-estate hubs of NCR, and the trends show how.

Compared to 5,700 units launched in NCR including Noida, Greater Noida and Gurgaon from July to September in 2016, there have been just a few hundred launches in the same period this year. This has been stated by real estate researchers Colliers International (India). The confederation of Real Estate Developers Association (Credai) claimed that launches have been at least 50% down by liberal estimates.

"The builders are now focused on delivery. First came demonetisation, then Rera and then GST. So everything has increased a pressure on builders. So many are either working on completing their projects or trying to work through the processes of Rera at the moment. There is no significant launches in these parts except for one or two projects," Pankaj Bajaj, president, Credai NCR, said.

For a buyer looking for a new launch or a fresh project, options are few and far between. Festival purchases, if at all there, are likely to be through resale, claim experts.

"I don't think even 1,000 units have been launched in the past few months. We have heard of a Godrej project launch and some other existing projects launching new phases. This is only the market sentiment when it comes to residential units. Commercial real estate does not reflect this trend," Surabhi Arora, senior associate director, Colliers International (India), told TOI.

"Real estate is currently going through a major correction. With the new rules and policy changes, the industry is under pressure. The overall dip in the national economy is also affecting how people are investing in real estate. I do not see any major shift in this trend in a short span. Fresh launches are getting slower as the builders are busy with compliance issues," Mudassir Zaidi, executive director (north), Knight Frank India, said.

"Two or three years ago, Diwali used to be peak flat booking time. While there are not many fresh launches, even buyers are not keen on buying or investing in fresh launches anymore as they have lost all confidence," Abhishek Kumar, president, Nefowa, said.