Pune's property market saw 16 per cent drop in housing sales in the first half of 2017 at over 40,000 units on demand slowdown post demonetisation and impact of the new real estate law, according to a report.
Housing prices have fallen by 4 per cent during last one year, as per the 'Pune Residential Realty Report', prepared by a leading builder Gera Developments.
"As expected, demonetisation and RERA have affected overall sales. The total offtake from July 2016 to June 2017 was at 86,354 units, 6.69 per cent lower than July 2015 to June 2016 sales of 92,546 units.
"At a half yearly level offtake levels also indicate a stressful situation. Offtake in January 2016 to June 2016 was 47,704 units while offtake in January 2017 to June 2017 is 40,063 units - a drop of 16.01 per cent," the report said.
The sales momentum has moved into the budget and value segments.
The average residential property prices continued to fall from Rs 4,900 per sq ft in December 2016 to Rs 4,786 per sq ft in June 2017, a further six monthly price drop of 2.3 per cent. The total drop in property prices since June 2016 was 4.01 per cent from Rs 4,984 per sq ft to Rs 4,786 per sq ft.
"The average prices are declining on the whole but this is on account of new inventory coming in at lower prices bringing the average down rather than a correction in existing projects," said Rohit Gera, Managing Director, Gera Developments.
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