Real Estate Market Witnessing A Drop Owing to Slow Demand And Large Inventories
End users are returning to the Residential Real Estate in some micro-markets. Despite the low sales, being out of the speculators improved the health of the country’s Top 7 real estate market. Sales in Mumbai, NCR, Bengaluru, Chennai, Pune, and Hyderabad dropped to 2.02 lakh units against 3 lakh units three years ago. In the first month of this year, new launches decreased compared to December 2017, but their absorption has increased. In January 2018, it had 500 units in the Top 7 cities, while in December 2017 it was 250 units. This information is received from data provided by Encore Property Consultants.
Anurag Puri, chairman of Encore Property, said, “The time passed when a large number of apartments were sold. Today those who are coming to buy houses are more aware than before. Speculation has ended in the Indian real estate sector by the ban on currency, real estate law and GST
Experts say that it was important to have this in the real estate market. This is increasing the number of end users. Initiatives such as real estate law have brought transparency in the industry, thereby enhancing customer confidence. However, it will take few quarters for full-scale recovery in the real estate market. Buyers are interested in ready-to-move apartments, which do not have GST. Due to the emphasis on the government’s affordable housing, the demand for homes priced below Rs 40 lakh is gradually increasing. In three months of the end of 2017, the rates have increased by 45% in less than 40 Lakh apartments, which was 39% in the first quarter of last year.
The government has given several concessions to the buyers under the Housing for All Scheme whose impact is visible. With the benefits of the Prime Minister’s housing scheme, at the lowest level in 10 years of home loan rates, there has been a positive impact on the Affordable Housing Segment.