Unsold housing stock in Bengaluru is stands at 80%. Bengaluru sold only 20 of every 100 houses built in the year 2018.
Unsold housing stock in Kolkata stood at 10 and Delhi-NCR around 5. The forecast for the year 2019 is looking bleak.
Reasons for unsold housing stock
Booming commercial activity and a cutting edge startup culture had kept the real estate at Bengaluru vibrant. But real estate market – the unsold housing stock has out performed all other metro cities in terms of unsold housing stock
The real estate market remains in the grip of a downturn as potential home buyers avoid purchases, leaving developers struggling with unsold housing inventory and interrupted projects.
The reasons for unsold housing stock can be due to the city’s evolution in terms of infrastructure development, transport and connectivity. Given the ever-escalating challenges the city faces on these fronts, a marked preference for walk-to-work options by home buyers has become evident.
Housing is the second-largest employer in India. It has seen a 30 per cent growth over the last two years. But new regulations, and a liquidity crunch after the NBFC crisis, has led to an increase in capital requirements for developers.
A large number of people are waiting for correction in GST rates. If you buy three months before the building is ready, then you pay 12 per cent GST post occupation there is no GST.
Prospects in future:
The industry as a whole has seen both the turmoil and the prospect that is likely to be the trend in 2019 as well. The big bang reforms implemented have brought about an imperative change in the tax, regulatory and business environment in India.
Indian real estate has also witnessed a ‘systems re-boot’ – beginning with demonetization, the legislation on Benami Properties, RERA, GST followed by the amendment to the Bankruptcy and Insolvency Code.
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