Residential sector crippled by demonetisation

India Infoline News Service | Mumbai | January 10, 2017 17:01 IST

The recent move of government's currency ban has taken the shimmer out of the residential sector. 2016 ended with lowest launches and sales since 2010.

The recent move of government's currency ban has taken the shimmer out of the residential sector. 2016 ended with lowest launches and sales since 2010.

According to Knight Frank India's half-yearly report, sales volume has fallen by 23% in the second half of 2016, while newly launched projects have declined by 46%. In the last quarter of calendar year 2016 (Oct-Dec), sales volume has dropped by 44%; whereas new launches have fallen by a massive 61%. 

In the last quarter of calendar year 2016 (Oct-Dec), sales volume has dropped by 44%; whereas new launches have fallen by a massive 61%.
Across all the cities, demonetisation has pulled down the last quarter sales. In 2017, lower home loan interest rate, RERA and GST, likely fiscal benefit for taxpayers in the Union Budget, enforcement of Benami Transactions (Prohibition) Amendment Act and demonetisation are likely to infuse a feel good factor, which is important for the recovery of the industry.
 

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