The housing market is showing signs of recovery, with sales rising by 13 percent in the period between January-March this year in seven major cities in the country – including Mumbai.
According to property consultant CBRE, 33,000 housing units were sold across Mumbai, Delhi-NCR, Chennai, Kolkata, Bengaluru, Hyderabad and Pune in the first quarter of this year. The sales stood at 29,000 in the same period last year.
New housing supply also increased to 33,000 units in the first quarter of 2019 from 25,700 units in the year-ago period.
Mumbai, Chennai, Bengaluru, and Delhi-NCR were the dominant markets, with a share of almost 70-75 percent in both new launches and sales, the consultant said.
CBRE attributed the recovery in the housing sector to stable prices that led to increased activity in the mid-end segment, followed by affordable and high-end projects.
The stabilisation of key policy reforms such as demonetisation and implementation of GST and RERA also helped in market revival.
The positive impact of these reforms resulted in new launches and sales rising by about 11 percent and 19 percent, respectively in 2018 over the previous year.
“The much-awaited growth in the residential market has started to be visible now, and metro cities such as Delhi-NCR, Mumbai, Chennai, Hyderabad, and Bengaluru are showing signs of recovery,” said Anshuman Magazine, Chairman & CEO of CBRE India, South East Asia, Middle East & Africa.
While we have witnessed a rise in developer interest in launching new projects, the focus still remains on completing ongoing projects and offloading existing inventory, he added.
Listing out some key growth factors noticed during the last quarter, CBRE said the unsold housing stocks have dropped while demand is more driven by end users than speculators.
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