After a slump of three years, the housing market in top three real estate markets seem to be back on track. As per a JLL India report, Bengaluru, Mumbai and Delhi NCR have shown signs of recovery in the year 2018.
According to JLL Research, Delhi NCR witnessed a 114 % year-on-year growth in new launches at 17,660 units, which is the highest among the three markets. While Bengaluru recorded annual growth of 81% at 37,286 units, Mumbai’s housing market saw a 22% rise in the launches.
The positive impact of the regulatory reforms, including the implementation of RERA and GST, are some of the factors that have contributed to the encouraging numbers. The regulatory reforms seems to be now reflecting in the form of positive consumer sentiment in the post-reforms regime has resulted in higher sales.
Talking about housing sales, Delhi-NCR topped the list again with a robust sale 71% on-year growth in sales at 24,725 units. Although sales in the first half of 2018 continued to be slow in Bengaluru, it picked up momentum in the latter part of the year, expanding at 17% on an annual basis. In Mumbai, the offtake of residential units in Mumbai revived and grew at 10%.
However, the rise in launches has added to the unsold inventory in the three cities. As a result, and much to the relief to the home buyer, due to the higher quantum of unsold inventory and sluggish demand of the past few years, housing prices have remained steady across the three markets.
The stable prices are most likely to push the sales momentum in 2019, as per the report.
In NCR alone, the activity heightened in Gurgaon and Ghaziabad. While Noida still constituted a majority share in total launches, its share reduced significantly to 39% in 2018 from 65% in 2017. Click here for the complete report.