Housing Sales Fall 31%; Launches Dip 40% in December Quarter: Report

New Delhi: Housing sales fell by 31 percent while launches dipped 40 percent in eight major cities during the December quarter, over previous three months, due to market uncertainty post-demonetisation, says a report.

The stock of unsold houses however fell marginally by 1 percent to 4,53,592 units in Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru and Chennai from 4,59,067 units in the previous quarter, said PropEquity, a real estate data, research and analytics firm.

"Housing demand crashed across top eight cities in the fourth quarter of 2016 post demonetisation of Rs 500 and Rs 1000 currency notes," it said in a release.

Sales stood at 26,718 units during October-December, down 31 percent from 38,450 units in the previous quarter. Similarly, the launches of new homes dropped to 16,636 units from 27,696 units.

"Housing demand (absorption) across key cities declined by 31 per cent largely on uncertainty post demonetisation which led to very few transactions materialising in both primary and secondary market," the company said.

The launches of homes fell as developers were waiting to gauge the true extent of demonetisation impact on real estate before launching any new projects, it added.

"Real estate sector in India, especially housing is going through a critical transition phase post demonetisation as transaction activity has slowed down considerably," said Samir Jasuja, founder and CEO at PropEquity.

The average prices of unsold units almost remain stagnant at Rs 6,683 per square feet as buyers and sellers delayed their decisions.

"Going ahead, the recent budgetary announcement to grant industry status to affordable housing will surely provide ample push for this segment in India, a key initiative under Housing for All. Developers having projects in the affordable segment will benefit greatly with this announcement," the report said.

with thanks : News18 : LINK

Real estate industry lauds infrastructure status to affordable housing

Union Budget 2017 increased allocation to Pradhan Mantri Awas Yojana from Rs. 15,000 crore to Rs. 23,000 crore in the rural areas

The real estate industry has reasons to cheer as Union Budget 2017 announced infrastructure status for affordable housing. Housing companies acknowledged the beneficial changes to the affordable housing segment as it would give a boost to housing construction for low-income groups.

Anuj Puri, Chairman and Country Head, JLL India, acknowledged the increased allocation to Pradhan Mantri Awas Yojana from Rs. 15,000 crore to Rs. 23,000 crore in the rural areas.

“This is very significant, because it will provide the vital budget housing segment with cheaper sources of finance including, but not restricted to, external commercial borrowings. Also, re-financing of housing loans by NHBs can give a leg up to the sector,” he said in a statement issued to the press.

However, Mr. Puri grudged the Budget missing out on giving any additional income tax incentives to first-time home buyers or providing higher tax savings on housing loans and house insurance premiums. The Budget did not raise house rent deduction limits as well.

A new Credit Linked Subsidy Scheme for the middle-income group with a provision of INR 1,000 crore in 2017-18 was announced. Also, extension of tenure of loans under the CLSS of Pradhan Mantri Awas Yojana (PMAY) was increased to 20 years from the existing 15 years. Mr. Puri observed that promoters of affordable housing projects will benefit from the cushion of two additional years for completing their projects, instead of the earlier timeline of within three years.

with thanks : The Hindu : LINK : for detailed news.

Union Budget 2017-18 makes real estate more affordable

Union Budget 2017 proposes several positive measures for the real estate sector. Below are the key positives measures included. 

Infrastructure status to affordable housing, which will reduce the cost of funding for the builders, the benefit of which he can pass on to the purchasers. 

Capital gain tax period reduced to 2 years from 3 years, which means less capital gain tax for a person who intends to sell the house after two years of purchase instead of 3 years.  

Read more at:

http://economictimes.indiatimes.com/articleshow/56913518.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst