Slowly yet steadily, the Indian real estate market is making a comeback in 2018. As per a recent report, the sales in the residential sector has recorded a 25% year-on-year increase in the top Indian cities.
The recent report by CREDAI states that new residential launches have grown across the top-7 cities of Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, and Pune. In fact, the number of new launches skyrocketed from a total of 34834 units in the fourth quarter of 2017 to 42975 units in the second quarter of 2018. As compared to residential launches, the housing prices went up marginally by 6.7% y-o-y during the fourth quarter of 2017-18.
“The economy is doing better and the GDP (gross domestic product) is also growing at a decent pace. The current environment is quite good for real estate,” Times Of India quoted T Chitty Babu, former national secretary, CREDAI (Confederation Of Real Estate Developers’ Association Of India).
Mr. Chitty Babu further added that since the job creation is also picking up over the past few months, commercial realty is also doing “phenomenally well.” In fact, the first half of 2018 saw the rise of corporate leasing activity by 54% on Y-O-Y basis.
Thanks to the implementation of RERA in most states, buyers are once again gaining confidence to invest in properties. There is reportedly a sentiment that the Indian real estate markets have bottomed out and capital values are now expected to only move northward. The sentiment, along with the dip in the prices, has even pushed fence sitters and new-age home buyers to take the plunge and make the purchase decision.
Going by the report findings, the industry experts feel that the Indian real estate market is witnessing what seems to be a paradigm shift in the momentum in all the aspects- residential, retail, office, and investments, have seen a healthy increase in demand.