The housing market came to a “complete standstill” during October-December 2016 on the adverse impact of demonetisation, as sales fell by 44 per cent in the eight top cities, the lowest figure reported since 2010.
This resulted in a Rs 22,600 crore revenue loss to the builders, according to Knight Frank.
Home sales in the residential segment fell to 40,936 units in eight major cities during October-December 2016 from 72,933 units in the year-ago period and 68,734 units in the previous quarter, according to a report released by Knight Frank India.
New home launches fell by 61 per cent to 24,316 units in the fourth quarter of 2016 compared with the year-ago period. The Delhi-NCR market was hit hardest with sales volume dropping by 53 per cent to 6,765 units in the fourth quarter of 2016, while new launches fell by a massive 73 per cent.
All eight cities witnessed a crash — including the usually resilient Bengaluru — during Q4 of 2016 and as a result home sales fell by 9 per cent at 2,44,686 units in 2016 from 2,67,957 units during 2015.