The residential realty market is slowly witnessing a recovery due to falling property prices. There is a gradual improvement in sales figures since prices have gone down due to the combined effect of RERA, demonetization and GST. Home sales across the major 8 real estate markets have gone up by approximately 28% in the last year to stand at around 51, 701 apartments. The better performance was spurred by RERA and the correction in prices to the tune of 10-15% across several major markets.
Growth will continue this year as well according to real estate experts. Total sales volumes in H2 2017 across these markets like the NCR (National Capital Region), MMR (Mumbai Metropolitan Region), Pune, Bangalore, Hyderabad and Chennai have come down by around 2%. This stood at 107, 316 units in all. This is indicative of how the impact of demonetization is slowly receding. It still remains a buyer’s market as per experts. Developers are re-launching their projects at prices which are quite attractive and this led to an increase in sales volumes last year.
The momentum should continue in this buyer’s market in the future. New launches in these markets stood at 19, 148 units overall and this is a reduction of 21% and 70% as compared to the December quarter of the years 2017 and 2015. New project volumes in H2 2017 stand at 40, 832 units which is 1/4th of the levels of supply in the year 2015. The launches in the year 2017 went down by 78% as compared to the peak volumes in the year 2010.
Sales volumes came down by 62% in 2017 from the peak figures in 2011. However, the gradual recovery in realty markets is heartening for developers who are steadily being able to clear their unsold inventory. The Indian realty market looks positive over the next few years. However, prices are steadily stabilizing in several major markets that were listed below. Several buyers who had put off buying decisions earlier are now returning to the real estate market.
Prices have increased in markets which have higher volumes of ready to move projects like Ahmedabad and Hyderabad. The price increase in these two cities stands at approximately 2% and 3% respectively.