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Business News/ Companies / News/  New launches by non-branded realty firms down sharply post regulatory reforms
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New launches by non-branded realty firms down sharply post regulatory reforms

New launches by non-branded players in India’s top seven cities accounted for 47% of the total supply
  • By the end of 2016, share of new launches by non-branded players accounted for 58%
  • New launches by such developers have continuously declined in the last three years. (Photo: Bloomberg)Premium
    New launches by such developers have continuously declined in the last three years. (Photo: Bloomberg)

    Mumbai: Share of fresh housing supply from non-branded and local builders has declined significantly as the real estate sector moves into a major consolidation phase following regulatory changes and demonetisation three years ago.

    According to data compiled by real estate advisory firm Anarock Property Consultants, new launches by non-branded players in India’s top seven cities accounted for 47% of the total supply in the first half of this year, a sharp fall from 60% during corresponding period in 2016, prior to the government’s move to ban high currency notes.

    New launches by such developers have continuously declined in the last three years while those of branded builders have increasingly gained during the period.

    Branded developers include listed firms, those which have existed for over a decade, newly-formed entities of large conglomerates, and also those with sizeable areas under development either locally or pan-India. They include names like Godrej Properties, Oberoi Realty Ltd, Brigade Group and Prestige Estates Projects Ltd among others.

    By the end of 2016, share of new launches by non-branded players accounted for 58% of the total 2,49,840 units launched during the year.

    "From 2017 onwards, the trend began to change due to the reformatory changes and the wiping out of the fly-by-night developers and major consolidation of smaller players with the bigger ones. As a result, the overall share of new launches by branded players kept increasing" said Anuj Puri, chairman, Anarock Property Consultants.

    While the government launched demonetisation in November 2016 to crack down on black money in the country, Real Estate Regulatory (and Development) Act (RERA) came into force in May 2017.

    In 2017, of the total 1,46,860 units launched during the year, new launches by non-branded players accounted for 48%. This further fell to 44% the following year.

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    Published: 17 Jul 2019, 10:04 AM IST
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