2018 May Not Bring the Big Residential Revival
- Anuj Puri -
The year 2017 will be remembered as the year of disruption and radical policy reforms in the history of Indian real estate. While RERA and GST might be considered as a disruption by the industry, the government’s sustained efforts towards promoting affordable housing provided some hope to the beleaguered residential sector. However, the year 2017 was another watershed year for the residential sector wherein neither new launches nor sales could not ignite the hope of revival.
As 2017 comes to end, developers are hoping that the year 2018 will bring in the much-anticipated revival of the residential sector. However, the year 2018 is expected to be no different than 2017 because of the following notable trends:
Weak consumer sentiment will limit the revival - The weak job market, and slow GDP growth rate has negatively impacted consumer sentiment and they might continue with their stance of being extra cautious and conservative while making long-term financial commitments.
Developers will be under stress - Developers will continue to be under tremendous pressure for completing the projects as the consumer activism will increase and cases delayed possession will be taken up seriously by RERA.
Restricted new launches - In 2017, developers restricted the new launches and focused on completing the projects. This trend will continue in 2018 as well, as the regulatory pressure will further increase. Also, the supply of ready-to-move-in properties might increase in 2018 because of developers’ sustained focus on completing their existing projects.
Anuj Puri, Chairman – ANAROCK Property Consultants
Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of INVC NEWS.