Housing for All is all set for a renewed lease on life - and indeed faster momentum - under Modi 2.0, and will transform India when fully achieved.
Category: Real Estate Trends
Besides the usual demand for single-window clearance and industry status for real estate projects, what should ideally be included in the budget are further tax sops to homebuyers as well as investors
Kolkata’s new launches recorded a massive drop of 85% during the period with merely 1,000 units being launched in Q1 2019.
- Overall unsold inventory of luxury homes (priced INR 1.5 cr – INR 2.5 cr) declines to 42,650 units in Q1 2019 from 48,300 units in Q1 2018
- MMR currently accounts for maximum share at 56%
- Bangalore sees 49%, Kolkata 37% yearly decline in total unsold ultra-luxury homes
- NCR and MMR each saw a 7% decline in pent-up luxury inventory during the year
- Mid-segment (INR 40 lakh – INR 80 lakh) saw max. reduction with 14%; affordable (<INR 40 lakh) saw a 3% rise in total unsold stock in this period
Anuj Puri, Chairman – ANAROCK Property Consultants
The slowdown in Indian residential real estate over the last few years caused most high net-worth individuals (HNIs) to shun luxury housing and look at other investments within or outside real estate.
However, ANAROCK’s latest study indicates that HNIs are now using the tail end of the slowdown in India’s luxury residential market to their advantage.
Stagnant prices and best-buy deals have brought back some of the demand luxury homes, leading to a decline of 12% in this segment’s overall unsold stock in one year.
If we compare commercial real estate yields to those for residential properties, it becomes evident why many HNI NRIs prefer investing in the former.
Although investors are eyeing commercial properties and warehousing, the inherent demand for housing in India is beyond question.
Anuj Puri, Chairman – ANAROCK Property Consultants
As widely anticipated, RBI has once again reduced its key lending rate by 25 basis point. The lending rate now stands at 5.75, and this is the third consecutive rate cut since February 2019.
Even though the Indian economy is perceived to be in the grips of a slowdown, the markets are quite bullish on Modi’s return to power with a thumping majority.
This may eventually lead to mitigated risks in fiscal deficit – in all likelihood, it is sensing this that the RBI has made this rate cut.
As for the housing sector, this rate cut may send only send out positive notional signals – its real gain can be realised only if banks pass on the benefits to actual homebuyer borrowers.
The apex bank will need to ensure that this actually happens at the ground level since there has been little evidence of such transmissions in the recent past.
In the current scenario bereft with rising NPAs and the ongoing NBFC crisis, things look quite bleak at the moment.
The reason why most banks are not really able to pass on the benefits of RBI’s rate cuts is that their deposit rates are still very high.
The availability of land parcels in some micro markets in South-Central Mumbai has led to large-scale development of luxury homes and commercial spaces.
ANAROCK’s most recent data reveals that residential inventory in the top 7 cities overhang plunged to 30 months' worth in Q1 2019.
Several localities in Chennai now offer homebuyers the option to walk or cycle to work or significantly reduce their daily commute time.