Looks like real estate blues aren't going away any time soon. Anarock's latest report shows a significant decline in new launches and absorption in 2017. An Ambit report too highlights an 8 percent fall in residential sales over 2014 to 2017. Will weak consumer sentiment limit the revival? Can rising inflation push for hardening of interest rates further putting pressure on the struggling developers? In an interview with CNBC-TV18, Prashant Thakur of Anarock shared his views and outlook on the same.
The new launches have definitely declined. In 2017, it was a dip of close to 48 percent but having said that developers have been focusing more on completion as well as the buyers have also been preferring the stocks that are ready to move in in order to avoid the confusion related with goods and services tax (GST) and other execution risks that it might have, he said.
In 2018, we anticipate that the new launches would be muted because there would be huge amount of stocks that would be getting completed close to 1,70,000 stocks are getting completed in 2018 which would restrict the developers launch new projects, he added.
The appetite for new launch is quite less in the market right now, said Thakur.
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