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Real Estate Showing Signs of Resurgence

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Real Estate Showing Signs of Resurgence

The Indian real estate has witnessed some really interesting chain of events over the past one year such as demonetisation, GST, RERA and PMAY. The repercussions can be felt in the sector post these events, with changes being noticed within the existing norms in the real estate industry. While everyone was more focused on these events, many have ignored the changing trends in consumer demand which is showing signs of revival. While the prices in real estate industry, over the last 2 years, have been mainly flat and transactions rolling downhill, recent figures suggest that consumer demand is showing signs of resurgence.

According to recent data, there’s a 51% rise in the number of property buyers in the last 12 months, with the number of active property buyers rising from 3.4 lacs in July, 2016 to 5.3 lacs in June, 2017. Another interesting aspect is that the number of new property buyers entering the market has jumped by 25% from 2 lacs to 2.5 lacs in the same period.

Real Estate Showing Signs of Resurgence

On the other hand, the number of old property buyers has doubled from 1.4 lacs to 2.8 lacs. Old property buyers are defined as those who have been in the market for more than a month. The way the number of new property buyers entering the market is going up is indeed a noteworthy sign of recovery. The reason for rise in the number of old property buyers is mainly due to the fact that consumers are taking longer to decide on buying a property, as a result they are in the market for longer period of time.

If we take a closer look, the highest demand has been noticed in the 0-80 lacs budget segment and the demand in the sector has also grown by huge margin of 73% over the last year followed by the mid-market and luxury segments which has grown by 28% and 13% respectively. However, it has to be kept in mind that the growth in property buyers is not uniform across all cities. Cities like Hyderabad, Chennai, Kolkata and Mumbai have shown better figures in terms rising demand.

Real Estate Showing Signs of Resurgence

Steady completion of ongoing projects, implementation of RERA, changes in home loan rates, government’s constant focus on affordable housing through schemes like PMAY and CLSS and rapid urbanisation are considered to be some of the key factors that are attracting new home buyers in the market. Buying a new home is still a potential prospect among Indian consumers.Real Estate Showing Signs of Resurgence

Obviously, the number of transactions in the real market is nowhere near to these numbers yet, but the increase in the number of property seekers is definitely a positive sign for the Indian real estate industry. It is yet to been seen, how well the industry is able to cash in the on the rising demand into actual transaction, specially with the festive season getting closer which will truly determine whether the industry is indeed on the path of a sustained revival.

Also Read: The Future Of Indian Real Estate Market

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