In 2018, new launches and an annual increase of about 11 and 19 per cent in sales were driven by the impact of government reforms and the proactive approach of realty developers. The year also witnessed more sales than new launches indicating signs of a long-term revival.
“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. The sector has become more end-user driven and developers are increasingly factoring in the requirements of consumers,” said Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa.
The broad stabilisation of capital values and increasing disposable income are also contributing to the recovery of the residential sector.
“While we have witnessed a rise in developer interest on launching new projects, the focus still remains on completing ongoing projects and offloading existing inventory. The impact of RERA is evident in the timelines that are being committed by developers – these are more in line with market realties, thereby allowing end-users to plan their home purchases more effectively”, Anshuman Magazine was quoted by CBRE as saying about the status of new projects and impact of key reforms.
Despite affordable and mid-end housing segments coming into greater focus, certain smaller and local developers also continue to launch projects across the country. The past year’s good run in the residential sector is expected to continue this year as well with developers continuing to align themselves with the recent structural reforms.