Another report shows dip in new home launches

PUNE: Demonetisation, Real Estate Regulatory Act and GST combined has had a telling effect on new property launches in the city.As per a study by Cushman & Wakefield (C&W), real estate services firm, Pune saw a decline of 28% in property launches in the affordable segment (definition of which has changed).Overall, the city has witnessed a dip of 41% in new launches. This the third such report that points to a slowdown in new property launches.In July , a study by property consultancy firm Knight Frank had shown a year-over-year decline of 9% in new home launches in the first half of 2017 and a sequential fall of 30%.
Later, home developer Gera's research report pointed to a similar trend in its half-yearly survey .
The report had shown that new unit launches fell by 26% in the period between January and June 2017 over the same period the previous year.
“All cities, barring Mumbai, saw a decline in new launches, mostly due to the introduction of Rera and GST. Further, the first quarter of the year had the rollover challenges of demonetisation (November 2016) to grapple with, leaving many developers no choice but to defer their launch plans," C&W said in its report.
The agency also predicted that the scepticism to launch new projects will continue for some more time.
“Going forward, we expect continued scepticism from developers in announcing new projects as end-user sentiments are expected to remain cautious," the agency said, adding, “Meanwhile, developers will focus on reducing their existing unsold inventories through more attractive offers of discounts, payment plans, freebies and gifts to take advantage of the current festive season."