Pune: The Pune real estate market has witnessed a four per cent rise in residential project launches in the last financial year as compared to 2015-16.
However, a 16 per cent drop in residential launches in top eight cities has been noticed in the first quarter of 2017 as compared to the corresponding period last year.
This was revealed in the latest report from Cushman and Wakefield. The study stated, “A closer look at the trend indicates that launches have seen a steady quarter - on - quarter
(Q-o-Q) decline for the last four quarters, corresponding with the announcement of Real Estate Regulatory Act (RERA) 2016 in March last year and the demonetisation exercise in November 2016.”
“Launches in the residential sector have declined by about eight per cent during the period of April 2016 to March 2017 compared to the same period in 2015-16,” the study suggested.
The study observed that the ticket size of new launches across top eight cities saw an average decline of 14 per cent year - on - year (y-o-y) in 2016. “At the same time, the residential unit launches have declined in 2016 by 12 per cent to approximately 1,13,000 units and the unit launches continued to slide in the first quarter of 2017 as well. Developers are also focusing on completing their existing under construction projects, especially the ones at an advanced stage, to avoid contravening RERA’s rules and facing action. Currently, developers are mainly engaged in establishing systems and processes to register the ongoing projects,” the report stated.
Managing Director, India, Cushman and Wakefield, Anshul Jain said, “Launches in the residential sector are expected to remain restricted over the next two to three quarters as developers will make intrinsic changes to their business structure, operations and marketing strategies.”