Latest reports have indicated that the sales of homes in the top 7 cities of India, namely Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Kolkata and Hyderabad, have crossed the new supply of housing stock by 5% over the last couple of years. The lower interest rates at present and the relatively stable property prices make it a great time for investors and end-users to purchase properties at their chosen locations as per experts. As per reports, sales of real estate in these 7 cities cumulatively stood at 2, 44, 830 units for 2016 and 2017. At the same time, the cumulative number of new home launches stood at 2, 33, 387 units.
Experts feel that prospective buyers who are still sitting on the fence should buy their desired properties at the earliest since interest rates are still low and will rise again in the near future as indicated by recent trends. Additionally, the prices of real estate are still quite stable and corrections have even taken place in several locations. However, with growing demand and a revival of the market, they will also increase in the near future. The market is hugely favorable for buyers particularly for the higher transparency and accountability ushered in by RERA and GST among other major reforms.
The real estate market is improving rapidly as witnessed by the higher number of home launches over the last 6 quarters. The real estate market in India seems to be steadily shrugging off all its issues and the prolonged slump en route towards greater progress and profitability. In H2 2017, the number of launches went up for new homes after the stabilizing impact of RERA. There is high demand for projects launched in H2 2017 as per reports and this will lead to higher sales volumes for the industry in the quarter between January and March, 2018.
Most states in the country have already implemented RERA and the stabilization of property prices is another factor attracting buyers towards real estate. The market has immense future potential as per experts and with better governance and adherence to regulatory policies by developers, sales figures should only improve in the near future. Sales volumes have been steadily moving upwards over the last 7-8 quarters as per reports. This is majorly due to buyer demand that was stuck earlier due to negative market sentiments that prevailed back then.