After suffering from the triple shock of demonetization, GST and RERA, Indian real estate industry is slowly yet steadily coming back on foot. As per a recent Knight Frank report, housing sales have risen marginally, just 3 percent, in the first half this year to over 1.24 lakh units in eight major cities.
The property consultant Knight Frank released its key ‘India Real Estate’ report on July 26, Sunday. The report tracks primary property markets of eight cities- Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad.
The report indicates a positive trend first time after demonetization. Both sales and launches have grown over the past 18 months and are at their highest level since the demonetization period at approximately 1,24, 000 and 92,000 units respectively, the Knight Frank report said.
Talking about year-on-year comparison for the first half this year, the Knight Frank data showed that housing sales in Delhi-NCR increased by 5 percent to 18,047 units as against the year-ago period. It is Bengaluru that showed the maximum rise in housing sales by 22 percent at 25,802 units, while Mumbai saw a marginal increase of 1 percent to 32,412 units.
Housing sales in Hyderabad rose by 5 percent to 8,313 units while Ahmadabad also saw an increase of 3 percent to 8,087 units. Only Kolkata continued to show a downward trend as sales dropped by 19 percent to 6,591 units.
On the other hand, the effective price drop of 10-15 percent continues in cities like Mumbai, NCR, Pune, and Kolkata except for Hyderabad that showed an exceptional price growth at 8 percent year-on-year.
On the whole, Delhi-NCR real estate market has witnessed an upbeat trend first time after demonetization. While there was an increase in sales, the region saw 90 percent increase in the number of residential launches YoY growth in the first half of 2018.