‘Realty prices to remain depressed this year’

The cascading effect of note-ban, implementation of RERA and GST had dampened investment in this sector in 2017, and led to a 5-7 per cent decline in average prices and there is no likelihood of prices clawing back this year, warned an industry report by Anarock Property Consultants. 

“Although the tail-end of 2017 showed some signs of revival and there was an uptick in demand for ready-to-move-in properties, multitude of challenges in the form of lower prices and inventory pile-up will continue in 2018,” Anarock chairman Anuj Puri said. He further said the huge unsold inventory and the possibility of distress sale limit the possibilities of any significant price appreciation near-term. 

Sluggish demand along with bleak return on investment has impact the realty space since the past two-three years, Puri said. In 2017, private equity investments into the residential properties fell 25 per cent over 2016. 

“Also, for the first time in the past three years, realty as a whole and residential segment in particular has lost the No 1 position in attracting PE money. The steady fall in appreciation and persistent gloom in the residential market have forced PE players to shift their focus to other asset classes,” Puri said.