As per the Economic Survey 2017-18 tabled in Parliament, although some recent reforms might have affected the residential real estate market in the short term, these reforms helped in bringing down the unsold inventory levels from 888,373 units witnessed in April 2016, to about 807,903 units in October 2017.The share of real estate sector which includes ownership of dwellings accounted for 7.7 per cent in India's overall GVA in 2015-16. The growth of this sector decelerated in the last three years from 7.5 per cent in 2013-14 to 6.6 per cent in 2014-15 and further to 4.4 per cent in 2015-16. Similarly, new residential sales, fell to five years low of about 101,850 units during this period. Rising NPAs, higher risk provisioning assigned to real estate sector and dwindling profits in the real estate sector, have made banks reluctant to lend to the sector. With the enactment of Real Estate (Regulation & Development) Act, 2016, it is anticipated that accountability would lead to higher growth across the real estate value chain, while compulsory disclosures and registrations would ensure transparency.

Source: Economic Times January 29, 2018 12:22 UTC