After the severe market slowdown new project launch dipped in the leading cities. Indian real estate market has been witnessing several abrupt policy change and reformations. Real estate is one of those industries where the impact of any policy change is out in the open. Usually it speeds down the sales volume full tilt. A survey reveals that post demonetization overall there is 28% of sales growth in realty market across the major cities in the country. Where some cities have witnessed increased sale volume, others are still sitting on inventory heaps. Property sale in Kolkata has increased by 27%, realty sale in Chennai has dropped by 36%. But overall, it seems like that residential real estate market is slowly maturing. The only constant contributor is ‘affordable housing segment.’ As per recent industry data the price of affordable apartments has been increased by 1-2 per cent countywide with the increasing market demand.
In comparison with the other major cities affordable flats in Kolkata still has recorded stable market price despite booming demand. Sales growth happens to be high in top 8 markets by 4 per cent in the H1 of FY 2017-2018 on a year-on-year basis, followed by a sequential growth of 6 per cent in the H2 till August. Affordable housing segment singularly contributed 17% to the overall sale volume, up by 1% than the previous quarter. Property price within 25 lac bracket has witnessed highest growth at 16% on a yearly basis, while residential properties priced 50 lac-1 crore bracket sees a sharp drop of 3%. A recent industry report says that this year observes the highest number of units sold in past seven years at 15,824 overall.
“The reason behind stable market price in Kolkata is property market is Kolkata is much liberal for buyers from any economic class. On an average the luxury projects which cost around 60-80 lac are cheaper than that of other major cities. Being a user-friendly real estate market Kolkata is presently increasing more job opportunity just to boost the residential sale further,”- said Mr. Mahesh Somani, The Chairman - National RERA Committee, National Association of Realtors India (West Bengal).
The average market price- The entire realty growth is the result of the stability in demand and supply chain in affordable housing sector. The average market price is increased by 2% and 1% in Tier I cities year-on-year and quarter-on-quarter correspondingly. The average price across major cities stood at 6,764 per sq ft, up from 6,660 per sq ft. In H1 2017, affordable housing sector had 71% new project launches across the country under the 50 lac price limit, up from 52% during the same period of 2016. NCR, Kolkata, Pune and Ahmedabad drive the revival affordable housing with around 80% launches under 50 lac category. There’s also augmented demand observed for ready-to-move-in OC-ready apartments.
Experts suggest that real estate sale will jump during the festive season, as buyers’ confidence to realty will be shouldered by RERA stricture. Over supply and illegal possession will be restricted significantly. Though new launches will continue to be limited in number till the mid of 2018. It’s advised; buyers should take the fullest advantage of the policy reformations as well as the stable market rate.
Somani Realtors News Network -