New Housing Project Launches Drop In H1 2017 In Hyderabad: Report
Ambiguity on the implementation of Real Estate Regulation Act in Telangana has impacted the new housing project launches in the city during the first half of 2017
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Ambiguity on the implementation of Real Estate Regulation Act in Telangana has impacted the new housing project launches in the city during the first half of 2017, according to a report by property consultant Knight Frank.
New launches in H1 2017 has hit an all-time low of just over 2,500 units. Compared to H1 2016, new launches were down 55 per cent, and 56 per cent against H2 of last year, the report said.
Lack of clarity on the implementation of Real Estate (Regulation and Development) Act (RERA) 2016, has emerged as a major factor dampening new launches in the city.
In comparison, RERA is already in force in the neighbouring state of Andhra Pradesh. There is still time before it comes into force in Telangana, it said.
On the other hand, developers were in a rush to complete ongoing projects before RERA came into force, the deadline for which was May 1, 2017.
The increased pace of construction in ongoing projects gave home buyers the confidence to go ahead and buy a house while the same confidence among home buyers is largely responsible for a marginal uptick in sales in H1 2017 as compared to H1 and H2 2016, it added.
Compared to other markets, H2 2016 sales figures in Hyderabad did not reflect the true impact of demonetisation.
Sales remained steady in the second half of 2016 despite note ban bringing sales to a halt in other major markets.
"While launches nose-dived, sales are still steady (in Hyderabad). Meanwhile, prices have remained muted and are expected to move in the same manner, in the near future," it said.
The office segment in the city witnessed transactions amounting to 2.33 million sq ft in first half of the current year, which is approximately 26 per cent lower than the office space transacted in H2 of 2016.
The fall in office space transaction is a result of paucity in supply of quality spaces coming into the market.