Some of the biggest real estate
developers said they did not agree with rating and research firm CRISIL
that residential sales was unlikely to revive in the next 12-18 months.
Rajeev Talwar, chief executive at DLF, expects home sales
to pick up at least in the next financial year, if not in the next calendar year. “We are in a new economic cycle. The goods and services tax (GST) is settling down. The faster the people adapt to new changes like the GST, the sooner there will be recovery. It all depends on the change in sentiments.”
He said the agencies were predicting the same two years ago as well. “When demand picks up, it will take everybody by surprise.”
Research said on Tuesday the absorption of new homes has been on a slide for over six years. Sales in top 10 cities — Kochi, Kolkata, Pune, Ahmedabad, NCR, Bengaluru, Chandigarh, Chennai, Hyderabad, and MMR — declined at a compound annual growth rate of 8 per cent since 2011. “The trend appears set to last well into FY19 or beyond, portending more pain for developers,” it said.
Niranjan Hiranandani, chairman of Hiranandani group, said, “Any depression will not last long. Even the slowdown in 2008 lasted for eight months.” He said home sales
had picked up in many parts.
Housing sales fell 35 per cent across eight major cities in the July-September quarter, as demand slowdown continued in the property
market, according to PropEquity. New launches dipped 83 per cent during September quarter to 4,313 units from 24,900 units in the previous quarter, on the back of the Real Estate
(Regulation and Development) Act (RERA) and the implementation of the GST, it said.
J C Sharma, vice-chairman and managing director, Sobha Ltd, said: “Sales are sluggish but things should improve from the next financial year, as supply-side constraints will go away after the implementation of RERA.