Property Market Scoop - Gurugram - June 2017
June was a quieter month in terms of property transactional activity in comparison to the months of April and May owing largely to the holiday season that kicked in.
Previously, residential sales market had seen a demand side pickup in terms of volumes in the months of April and May and commitments from buyers being made.
Two structural changes in the market are on the cards – GST (effective July 1) and more importantly RERA (Real Estate Regulation Act which may came into effect from the centre in the country from May 1). Haryana has published a set of draft rules and is expected to notify the final rules in July as well as form a H-RERA regulatory body shortly.
The positive consequences of H-RERA will include a larger share of projects being completed on time here onwards by developers, a shortened supply pipeline and increased buyer confidence in the future.
Residential rental market was most active in terms of volumes in the month of June in Gurugram. Rentals were status quo or with slight increment with a large number of lease renewals as well.
Office Leasing Market has been unpredictable and tough to spot patterns with most prospective occupiers choosing to put their space take-up decisions on hold. GST is something firms were pre-taking into consideration during the month as to the impact on their respective businesses.
We see the market resuming its pick-up in terms of volumes in the next couple of months as GST and H-RERA become established. July – August should see healthier secondary market (residential) and office leasing queries whilst residential rentals are expected to remain cyclic.
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