Another financial year draws to a close. As we go into 2019 – 2020, we wonder, How was the real estate market in India in 2018?
Our market research shows new launches in 2018, were up by more than 80% in 2017.
Sales are stagnant. Unsold inventory increasing.
Though the supply or production of housing units in the property market doubled, the demand or consumption was comparatively somber. Property analytics index and tools such as RESSEX reveal, that in 2017 close to 2.56 lakh units were sold. In contrast, homebuyers purchased 2.79 lakh units in 2018. Since 2014, the sale volumes have remained muted and inventory has only kept piling up.
Having analyzed key real estate markets in India, data and analytics churned out by Liases Foras show that, a total of 2.12 lakh units were launched in the top-8 cities in 2018. In 2017, the number of units launched stood at 1.17 lakh. The Bangalore real estate market, followed by Hyderabad recorded the maximum growth.
Effect of policy overhauls
Anxiety and apprehensions had gripped the market players ever since the government started implementing provisions under RERA (Real Estate Regulation and Development Act) and levied GST in 2018. Moreover, purchasing a flat in under construction properties attracted GST of 12% in the last fiscal year, while no GST was charged on ready ones.
As a result, home-buyers opted to invest in properties that had completion certificates, rather than in those that did not. Hence, the production of new units far exceeded consumption last year. As a result, ready inventory is at an all-time high.
Ready inventory between 2014 and 2018 has increased by 2.5 times indicating a slowdown
Liases Foras has a comprehensive repository of exhaustive real-time data covering 60 Indian cities. With strong insight and an excellent team, we have created sharpest online tools for property and housing market analytics.