Recent growth in India’s real estate market
Undoubtedly there were setbacks in the realty sector of India and the condition in the last three years was not as prospective as it should have been. Thankfully the political conditions and the government policies helped to revive fresh confidence in the buyers along with a renewed interest of the consumers in the real estate. The purchasing power of the individuals also increased gradually says various surveys and statistical measures too. On top of that various market factors and the policy measures have helped to drop the prices of the commodities along with the prices of land plots and real estate products too. A statistical analysis say that in the second quarter of the year 2015-16 the land plot’s weighted average prices stood at Rs. 6,491 per each square feet. This raised by a meagre one percent both in the whole year and this quarter. On top of that the sudden decrease of the home loan base rates by the reserve bank of India came as a surprise to the real estate sector. Consequent to this most of the banks reduced the home loan rates by 25 basis points. The result of these positive factors on the market already started showing their impact on the realty sector. The figures of the sales of the top eight cities of the country registered signs of marked improvement with each city generating about 17 percent improvement on a year on year basis. The second quarter of the financial year 2015-16 shot up by a significant amount from 57.8 million sq. ft. to 67.9 million sq. ft. The experts opined that this happened due to the promotional offers by the developers in the festive season which might be the reason for this improved sales figures.
How is the market faring?
As per the data of a research firm the sales figures in the eight top metros of the Indian sub- continent namely Bangalore, Chennai, Ahmedabad, Hyderabad, Kolkata, National Capital Region, Mumbai Metropolitan Region and Pune has improved by 17 percent on a year on year scale. The sales in the second quarter of the current year shot up from 57.8 million sq. ft. to 67.9 million sq. ft. compared to the first quarter of this year. The luxury segment of the major cities accounted for the sale of 22.4 million sq. ft. which are of the cost range of Rs. 50 lakhs to Rs. 1 crore. The next in the sale volume is the sale of the apartments and homes in the range of prices of Rs. 25 lakhs to Rs. 50 lakhs.
A considerable section of the experts say that there is yet more to come as the FDI norms have already been relaxed and this will have its positive impact on the realty market. The New Real Estate Regulation bill awaiting approval of the parliament is also pending which will surely have its positive impact on the sector bringing more regulation, organization and transparency. So on an overall basis the realty sector and the economy are on the path of progress.
