New laws, stagnant property prices and a recent reduction in interest rates have led to a revived demand for real estate across the top 8 cities in the country.
Both the affordable and luxury segments have witnessed a spurt in demand. Big companies like Adani Realty have picked up on this and are developing projects spanning from small ticket units aimed at budget buyers to super luxury Villas and Towers.
The Mumbai Metropolitan and National Capital Regions, that have posted 39% and 11% growth respectively, have dominated sales. What's more, the bullish sentiment has been seen despite the period of Pitra Paksha, which is considered inauspicious for buying a property. It's the best September quarter sales performance recorded over the past five years and the end of year quarter is slated to be even bigger given the improvement in sentiment and economic growth.
Bank rates have also been slashed, resulting in more optimism among buyers. India's largest commercial bank, State Bank of India, reduced its home loan rates to 9.1%, the lowest in six years as part of its festive scheme. The move is likely to be followed by several other lenders resulting in further lowering people's home loan woes
New laws have come into effect, many of which are beneficial to end consumers. Still, 40% of recent sales were recorded in projects that are nearing completion, indicating that home buyers still fear delivery delays and are willing to spend more just to see a key in hand as soon as possible.
New launches in Bengaluru dipped by one-third compared with the last quarter showing that developers are trying to cash in on the trend by concentrating on off-loading existing inventory.
Realty experts are also expecting the seventh pay commission recommendations that are being implemented by the central government, to provide a stable and positive impact on the economy in the form of increased spending on long-term assets.
Overall, it is the combination of slick construction, lots of bundled lifestyle amenities, good locations, a strong brand and commitment to delivery schedules that will ultimately help any company do well. Being quick to cash in on festive sentiments and bank rate fluctuations is also a game changer.
It's hard to predict the exact timing of a turnaround, but the real estate sector will certainly do well over the next decade.