The reforms introduced by the Union Government are turning out fruitful especially in relation to the residential real estate sector.
The half-yearly survey by Knight Frank shows that the launch of new housing projects has witnessed an increase of 21% in the current year. Apart from this, the country-wise sale of housing units reported a hike of 4% in the same tenure. The report also states that the residential market witnessed growth both in demand and supply for the third time in a row. This is also the highest record reach since demonetization reform was bought in 2016.
The factors like RERA, GST and availability of CLSS subsidy for affordable housing segment are the main reasons behind the increase in numbers. The report by Knight Frank shows that the 51% new launches between January and June 2019 fall under the price bracket of Rs. 50 lakh and 78% of the residential projects come under the price bracket of Rs. 1 crore. The developers today are also focusing on affordable housing segment to fill in the demand.
A top official of Knight Frank India, said that the RERA reforms and lower GST rates for affordable housing has improved market conditions. In the current scenario, the homebuyers prefer ready-to-move-in option instead of the under-construction units and that is why the developers are trying to complete projects in the time.
In the first half of 2019, the unsold inventory in top eight cities has come down. The Hyderabad city reported a decline of 67% in unsold inventory, however, Mumbai gave a not so happy report.