Improvement Of Residential Market In India
05 Oct 2015
The financial crisis in last two years has played a very crucial role in India's real estate sector. In the recent quarter, the property market is beginning to look good. Also, economic recovery is rising. No significant improvement has been witnessed in the construction sector despite the announced policies that have enhanced the buyers sentiments. It is expected by the FDI in the construction sector to turn the table in favour of realty sector.
No significant improvement has been witnessed in the construction sector despite the announced policies that have enhanced the buyers sentiments.
FDI in the construction sector has increased twice as much in January 2015, in comparison to January 2014. Moreover, there are few other policy changes seen as growth stimulators for the sector like controlled inflation, the downward revision of repo rates, reduction in home loan interest rates. Thus, improvement in the transaction volume is expected till the end of this year.
Citi Bank’s Property Insight report says the housing trade is likely to raise in upcoming quarters. Metropolitan cities like Bengaluru and Chennai already have 5-7 per cent appreciation in capital values in the mid-housing segment while selected localities of Hyderabad have seen a rise of 3-6 per cent.
Delhi NCR ( Gurgaon, Noida)
According to 99acres Insite report (Jan-Mar 2015), the capital and the rental values have remained static in Delhi-NCR during the first quarter of 2015. New launches have refused in NCR in the last two quarters. By the end of 2015, some 50,000 units are expected to be delivered in Noida.
The Realty sector in Pune has been quite positive in Jan- Mar 2015. In the areas like Hinjewadi, Wagholi, Kharadi, etc. has the majority of the demand in the mid-segment properties. As per the high demand from both investors and buyers, constructors continued to launch their projects with North East, South West and South West zones being the most progressive ones.
The only city in India where real estate transactions and development have not been abandoned in last one year is Bengaluru. According to Citi Bank, the total units launched in the top seven cities is 24,600 and Bengaluru have the major share of 17 per cent. In The South-East zone, many new projects have been launched by both city based and renowned builders. The Citi Bank report also says that the city has the highest absorption share during the first quarter of 2015 among the top seven cities.
It is witnessed that project launches have improved in the mid-segment properties, whereas prices remain the same. According to the Citi Bank report, the localities along the North Zone and the EM Bypass witnessed the highest number of finished projects in the first quarter of 2015. Approx 5,700 units are expected to be delivered in the next three months.