This festive season, housing sales can rise up to 15 per cent
Housing sell will rise – festive season.
This Dewali, residential property sales may rise up to 15 per cent due to various offers and discounts by real estate developers as there are many real estate developers who are offering 15 to 20 per cent discount through various means. According to real estate experts, this festive season can holds out the hope of Indian real estate market as in major markets the demand from end users are increasing. Experts are estimating the growth of up to 15 per cent and more in residential property sales in comparison of previous year.
According to Chief Executive of one of the Mumbai-based real estate company, “From past one year there was no major price appreciation in real estate market, but this time real estate developers are offering 15 to 20 per cent discounts with an aim to make the net gain of 25 per cent in prices for buyers.” However; price reduction seems to be the most important primary reason for the consumer pull. In comparison of last year, growth in sales should be between 15 to 20 per cent, however; it also depends on the market and it is showing positive curve towards growth, as per the statement of experts, “It’s not time when we should expect the high growth number in comparison of previous boom. But still it’s expected that consecutive years of growth will help the market to recover from deep down phase. And due to that this year we are expecting good numbers”.
As per the statement of Sanjaya Gupta, MD of PNB Housing Finance, “Hyderabad, Pune, Bengaluru and the suburbs of Mumbai had seen increased activity in last few years. Last week were surprised to hear that transactions in south Delhi was high with ten high-end floors being sold. We can say that its harbinger of better sentiment”. Apart from new launches dwindling in major cities such as; Mumbai Metropolitan Region, Bengaluru, Delhi and NCR expecting are high time because most of the real estate developers focusing on clearing inventory with ready-to-move in houses in next 6 to 12 month. It will improve the confidence of buyers or end users accustomed to seeing delivery commitments being flouted. According to PropEquity, a real estate consultancy, the number of new launches in MMR, Bengaluru and Delhi-NCR has come down by over 61 per cent with 87,298 dwelling units during January to September from 227,211 in the same period of 2012.
According to statement of Pankaj Kapoor, MD of Liases Foras, “There would be a significant improvement in sales for this festive season because interest rates had come down and price had not gone up so much and developers are also offering the discounts”. The more he added that over the year’s income of working couples have raised by 10 to 15 per cent, which means affordability has improved in most markets such as; Delhi, Mumbai and NCR. In real estate market the inventory level for first quarter of 2015-2016 was rose by 24 per cent to 41 months in all major eight cities. However; NCR had the inventory of 68 months, MMR had the inventory of 45 months, and Bangalore had the inventory of 30 months, as per the reports of Liases Foras. An efficient housing market maintains 8-12 months of inventory.
It’s clear that Indian realty market has been hit economic slowdown, financial constraints of developers and low sales in last two years. According to Ashutosh Limaye, National Director, Research at JLL India, “This year will be better than the last year”. The plus point in this season is the price and it is attractive for buyers and end users. The more he added that still there is scope for negotiation. The festival season is started from October and it will continue till December, it is expected that 30-40 per cent of total house sales but in last two years very little activity has been recorded during the season.
