{"id":40213,"date":"2017-01-10T23:41:49","date_gmt":"2017-01-10T16:41:49","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=40213"},"modified":"2017-01-10T21:13:21","modified_gmt":"2017-01-10T14:13:21","slug":"indian-property-sales-slump-is-worst-since-global-financial-crisis","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indian-property-sales-slump-is-worst-since-global-financial-crisis\/","title":{"rendered":"Indian property sales slump is worst since global financial crisis"},"content":{"rendered":"


\nIndia’s property market will continue to suffer next year from demonetisation after sales and launches at the end of last year plunged to the worst level since the global financial crisis, incurring a 226 billion Indian rupees (Dh12.18bn) industry loss in the fourth quarter, according to a new report. Home sales in the last quarter of 2016 in India’s major cities – including Bangalore, Mumbai and New Delhi – crashed by 40 per cent compared with the previous quarter, said the property consultancy Knight Frank. Launches of properties, meanwhile, fell by 45 per cent compared with the previous quarter. This is despite the fact that the fourth-quarter period, which is the festive season in India, is traditionally a busy time for home sales. The plunge led to a quarterly loss of 226bn rupees. “I think the effect of demonetisation across markets, across all segments of residential markets, has been brutal to say the least,” said Shishir Baijal, Knight Frank India’s chairman and managing director. The crash is being attributed to the government’s surprise move in November to discontinue the use of the largest value banknotes of 1,000 and 500 rupees as a move against the country’s black economy. Uncertainty is set to continue this year as demand is expected to be muted in the first half and there could also be some downward pressure on prices. “The uncertainties that came in 2016 still abound,” he said. “Remonetisation is still a few quarters away. The uncertainty in the implementation of GST [the goods and service tax] still remains.”Sales volumes could drop by up to 30 per cent and prices could fall by 7 to 12 per cent over the first six to nine months of the year as a result of demonetisation, Kotak Institutional Equities said in a report last month. The property market in India has long been a major beneficiary of illegal funds. The move has also created uncertainty and left the population with restricted access to cash, which is prompting a lot of potential buyers to postpone their purchases.Knight Frank had earlier been forecasting that home sales would rise by 4 per cent in the second half of 2016 compared to the same period last year. Instead, sales in India’s biggest cities fell by 23 per cent in the second half of the year compared with the year earlier. There was a 7 per cent rise in sales in the first half of 2016 compared with the first half of 2015. There were a number of positive factors for the real estate industry last year after a few difficult years for the sector, including the passage of a real estate regulation bill and an improvement in the monsoon rains. Demonetisation derailed everything. The report, which tracks eight major cities in India, said Delhi NCR was the hardest hit, followed by Bangalore and Mumbai, while Hyderabad was the least affected.Brexit and the US president-elect’s policies could also have implications for the commercial sector in particular and the industry is waiting to see how those factors play out, said Mr Baijal. Interest rates also have the potential to play a significant role in reviving the industry this year, he said.business@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Indian property sales slump is worst since global financial crisis<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

India’s property market will continue to suffer next year from demonetisation after sales and launches...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-40213","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-asB","jetpack-related-posts":[{"id":13252,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indian-property-market-sees-light-at-the-end-of-the-tunnel\/","url_meta":{"origin":40213,"position":0},"title":"Indian property market sees light at the end of the tunnel","date":"May 16, 2016","format":false,"excerpt":"\r Mumbai \/\/ The worst is over for India's property sector and home prices are expected to start recovering soon, according to a report by JLL.India's residential market has struggled in recent years as demand has been subdued. \"Trends are beginning to change on expectations of a good monsoon, revival\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41881,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/disruption-on-real-estate-from-demonetisation-is-only-about-to-get-worse\/","url_meta":{"origin":40213,"position":1},"title":"Disruption on real estate from demonetisation is only about to get worse","date":"January 25, 2017","format":false,"excerpt":"\r Deep discounts to be expected from second-tier developers Long queue of people outside banks to deposit old 500 and 1,000 banknotes. singh_lens\/Shutterstock India\u2019s demonetisation campaign will come at a hefty cost to real estate sales this year, Fitch Ratings warned in a report released this week. The ratings agency\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":31798,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indian-developers-target-nris-in-emirates-with-special-offers-for-diwali\/","url_meta":{"origin":40213,"position":2},"title":"Indian developers target NRIs in Emirates with special offers for Diwali","date":"October 27, 2016","format":false,"excerpt":"\r Rebecca BundhunForeign CorrespondentMumbai \/\/ Property developers in India are actively targeting Indian expats in the UAE with a slew of offers, ranging from free gold to discounts as they try to drum up sales this Diwali amid weak demand closer to home.Diwali is traditionally considered to be an auspicious\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":42921,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indias-property-sector-gains-in-jaitley-budget\/","url_meta":{"origin":40213,"position":3},"title":"India's property sector gains in Jaitley budget","date":"February 4, 2017","format":false,"excerpt":"\r MUMBAI \/\/ India's property sector is set to be one of the key beneficiaries of the federal budget, according to analysts.\"This has been one of the path-breaking budgets with far-reaching changes especially for the real estate sector,\" said Shishir Baijal, the chairman and managing director of Knight Frank India.\"This\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54735,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-residential-launches-lift-profit-amid-positive-economy\/","url_meta":{"origin":40213,"position":4},"title":"Emaar residential launches lift profit amid 'positive economy'","date":"May 14, 2017","format":false,"excerpt":"\r A spike in the value of sales of new residential property in Dubai helped lift first-quarter profit for developer Emaar amid what its chairman calls a positive economic environment in the emirate. The developer said that its preliminary net profit for the first three months was 15 per cent\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54719,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-property-sales-lift-emaars-first-quarter-profit\/","url_meta":{"origin":40213,"position":5},"title":"Dubai property sales lift Emaar's first-quarter profit","date":"May 14, 2017","format":false,"excerpt":"\r Emaar Properties' first-quarter profit were lifted by 15 per cent from a year earlier as sales spiked for new residential properties in Dubai.The Burj Khalifa developer said that its net profit was Dh1.38 billion in the first three months of the year, up from Dh1.2bn, as property sales began\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/40213"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=40213"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/40213\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=40213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=40213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=40213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}