Recent trends suggest The Real Estate Market in India has seen a massive rise in sales of unsold properties. Reports indicate Home buyers are returning steadily to investing in properties in India.
In the past year, property prices have been favourable to home buyers. Also, the cuts in the GST Tariff and the fact that the Real Estate market in India is expected to see a gradual drop in the interest rates are an added advantage. Interestingly, Sales in Real Estate in India has been on a positive momentum with a consistent rise seen. The lower number of launches relatively is another key prospect as well.
Cumulatively, all these phenomena are helping the market return ploddingly back to normalcy. Considering the sales figures for the last two years in the Real Estate market in India, it is seen that the inventory of unsold properties has dropped significantly to 30 months from the previously recorded 50 months in the top seven cities in India.
Also, There has been a steady decline of 16% in unsold housing in the last two years even though the number of unsold properties is higher than what was observed in 2013. The rising inventory of unsold properties was a trend since 2014 but fortunately enough, it can be seen that this trend has been disrupted.
These above-discussed measures include the number of months it will take to sell the current unsold stock. Ideally, anything above 18 months of unsold stock is considered an unhealthy prospect.
Looking at the current scenario and considering the presence of a stable re-elected government at the centre, confidence in homebuyers seems to be on a rise which can be seen in the increasing velocity of sales in the housing market.
What was discussed above was the fact that the seven metropolitan cities saw a 16% average decline in the unsold properties inventory. When probed further, Bangalore is reported to have seen a 44% decline, the sharpest in the country. Followed by Hyderabad at 21%, a lot of Real Estate developers have reported a massive rise in demand for homes for sale in India.
Apparently, Delhi based DLF, the largest property developer in India noted sales of 2435 crores when compared to the previous year’s sales of 1000 crores.
The recent consumer sentiment survey by a leading real estate developer indicated that over 60% of the prospective home buyers might make a real estate investment in India in 2019.
If one were to study the homes that have been sold recently it can be speculated that home buyers are preferring to invest in nearly completed or ready to move in homes.
If we were to look into the details, the drop in GST to 1 % from 8% on affordable homes albeit the input tax credit, GST Cut to 5% from 12% on other projects, drop of the benchmark rate by 50 Basis Points by the RBI leading to a drop in the interest rates for home loans are all positive aspects of the improvements in the Real Estate market in India.
In conclusion, favourable property prices, cuts in GST rates, new sops for first time home buyers & budget home buyers by the Government of India are the reasons the market is showing positive prospects.
Homes247.in Expert’s View
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We have ramped up our initiatives to educate home buyers thanks to the constant improvements and changes in the Real Estate sector in India.
The last 2 years have been phenomenal for Real Estate in India with the Government giving a positive push to home buyers in the market to invest in the Real Estate market in India.
Housing for All, GST cut and drop in Lending Rates are all efforts by the Government to clean up the market in a way that the inventory of unsold properties comes down and buyers show more interest in investing in the Real Estate market in India.