A peep into the present state of the real estate market in India, to help you buy

By : 360 Realtors

20 February, 2018

The real estate industry witnessed a number of reforms in 2017. Let's have a look at the present state of the real estate market in India. People looking for ready to move projects in India should know the market conditions and this article will guide them in making the right decision. When you plan to buy a house, it is necessary to examine the condition of the industry. First of all, a slow sale has been a feature of the real estate industry in India after demonetisation in 2016. Other economic reforms like the GST and the inception of the RERA also slowed down the rate of sales in the industry. The overall performance of the economy determines the demand of residential and commercial properties.

The real estate industry in Delhi and Mumbai were most hit as a result of the economic reforms. However, the real estate industry is recovering, and the middle-income group can go for the affordable houses in India. The supply overhang has not been evident in the real estate markets in Kolkata and Chennai, which are more conservative than Mumbai, Bangalore and Pune. These regions, too, have witnessed the dip in sales of property.

The demand gap is another factor that has hindered the industry in 2017. However, the developers have continued launching projects in the top cities of the countries and no decline in the development of new projects has been visible. According to experts, the pace of launching of projects is likely to continue, despite the decrease in demand for these properties. The real estate companies are aware of the high demand for affordable homes. A number of developers are re-aligning their offers in order to attract people looking for apartments at reasonable prices. A large number of developers are coming up with apartments with price ranges varying between INR 20-40 lakhs. However, the demand for NRI property is higher and the demand for properties for NRIs has been increasing over the years. The end users are also willing to buy affordable houses in the suburban areas with good connectivity to the important places. The social infrastructure of certain peripheral areas has been developed in recent years. This has increased the demand for quality homes in these regions.

However, new residential property launches in these areas have been much lower than the demand. This is because of the dominance of the local builders in the areas, rather than the big players. The large developers remain away from these projects due to the low amounts of profits in these areas.

The demand for luxury housing has increased in recent years. However, the middle-income groups are more active in buying affordable homes. The margins, as well as sales speed, in these properties are impressive. The number of luxury home launches in the top cities has increased in recent years. However, these homes have been developed only for the high-income groups. The sales of luxury property in India have been increasing in the big cities. The demand for affordable homes has been increasing over the years.