The sale of residential units saw a slight increase in the financial year 2017-18, but the real estate sector continued to remain sluggish, miles away from the momentum it saw in 2014-15. Figures released by the office of the Inspector General of Stamp Duty and Registration show that by the end of March, the state had recorded registration of 21, 93,149 documents, and earned a revenue of Rs 26,494.91 crore from them. The state even managed to exceed its original target — Rs 23,000 crore — for the year. More than 80 per cent of the registered documents pertain to sales deeds.
The number of registrations as well as the revenue have increased compared to last year, when the state had registered 21,22,591 documents and Rs 21,052.65 crore was earned in terms of revenue.
But last year’s figures are not very impressive when compared to the registrations of 2014-15 and 2015-16. In 2015-16, the state had seen the registration of 23,08,809 documents, while the previous year had reported 22,97,929 documents.
real estate, pune, fy 2017 18, financial year 2018, pune real estate sector, maharera, indian express
In November 2016, the Centre introduced demonetisation, which had a significant impact on the real estate sector. Any comparison with that year is not logical, say industry experts. In June and March, the real estate industry saw brisk sales, with 2,29,851 and 2,20,000 documents registered, respectively. While June sales were driven by the pre-GST (Goods and Services Tax) mood, sales increased in March due to reports of an imminent rise in the real estate industry.
Most of the other months, however, reported dull sales figures. This financial year also saw two big ticket reforms: GST and MahaRera. While GST aimed to usher in an uniform tax structure, MahaRera introduced a much-needed regulatory framework in the business.
Due to the stringent penalty conditions in MahaRera, most realtors have started using their funds to complete projects, rather than focussing on new launches. But despite the limited supply, demand in the sector is yet to pick up. A report by Knight Frank mentioned the possibility of a slight price correction in major market segments like Pune, due to the amount of unsold inventories.
Some in the industry felt there were signs of improvement, while others have decided on a wait-and-watch approach.
Source: http://indianexpress.com/article/cities/pune/fy-2017-18-punes-real-estate-sector-sees-slight-recovery-but-still-stutters-5125712/
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