As per QuikrHomes data, it is estimated that unsold housing inventory in India’s 8-major cities – the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR), Bengaluru, Chennai, Hyderabad, Ahmedabad, Pune, and Kolkata reached altogether at 11,48,077 units in the last 6 years. Furthermore, new launches in these cities were 24,24,260 while the sold units during the same period were 12,76,183.

New Launched Units In Top Eight Cities:

MMR had maximum new launched units 5,17,300 in the last 6 years. Bangalore held 2nd position with 4,71,809 units, while NCR was the 3rd with 4,29,882 new launched units. Before the implementation of RERA in the country, the new projects launched in India’s top eight cities during 2014 and 2015 unexpectedly high than later years. After the implementation of RERA new project launching has reduced significantly during 2016,17,18 and 19.

Unsold Units in Top Eight Cities:

Bangalore had the highest unsold inventory 2,43,709 in the last 6-years. Mumbai Metropolitan Region (MMR) held in 2nd with 2,43,678 unsold units, while NCR was 3rd with 1,38,628 unsold units. 

Sold Units in Top Eight Cities:

Moving towards sold units, QuikrHomes data revealed that MMR had sold the maximum units 2,73,622 in the last 6 years. Delhi-NCR held in 2nd with 2,54,469 units, while Bangalore was 3rd with 2,28,100 units. 

RERA was implemented on May 1st, 2016 across the nation. Even though some sections of the Act were introduced on May 1, 2016, it came into force in its whole on May 1, 2017.

Before the implementation of RERA, every builder/developer followed different practices and framed the builder-buyer agreement in such a manner that favors them only. The main purpose of implementing RERA to protect and safeguard the interests of the homebuyers so that no builder/developers could cheat the buyers further. It has provided several rights to the homebuyers and has also specified certain rules and regulations to be followed by all builders/developers across the nation.

Possible Causes of Drop in New Launches:

• The main causes of the drop are not as difficult to recognize. Demand has dropped as a result of high prices and the overall economic slowdown, job layoffs in the auto and IT sectors and depressed wages. 
• On the other hand, builders did not want to lower prices because they had previously sold some apartments at a high rate. 
• The realty market is also facing a liquidity crisis due to the crisis in non-banking financial companies (NBFCs). 
• Also, potential real estate buyers continue to hold buying decisions.

What initiatives have been taken by the govt to revive the market?

There are several bold steps taken by the govt to boost the realty market such as relief in GST rate, 5th consecutive repo rate cut, infrastructure status to affordable housing, implementation of REIT, opening up of FDI, setting up of a Rs 10,000-crore fund for non-NPA and non-NCLT affordable housing projects, reduction in home loan rate etc. but failed to return the buyer’s sentiments.

Though the Reserve Bank of India recently cut its 5th repo rate cut in a series since the beginning of this year, this time by an unusual 25 basis points but banks are giving only a part of the repo rate cuts to retail consumers as cheaper loans. It forced potential homebuyers to continue to hold the buying decisions.

As a result, new launches across the nation have reduced significantly and forced builders to clear the old inventories.