The implementation of the RERA Act and the stringent infusion of financial reform like Goods and Service Tax [GST] helped the Indian property market in its revival. The combination of both these financial reforms made the prospects turn their head towards the real estate sector and thus this industry is coming back on the track.
According to a report, Mumbai and the IT city Bengaluru have topped the real estate market growth chart in the first quarter of the year 2018. These places are ranked on first two positions while considering the new property launch and the sale of properties including commercial, residential and retail land/plot. All these sales are assessed in terms of sales volumes.
The Mumbai city is also known as Mumbai Metropolitan Region [MMR] has sold 12, 300 units in the first quarter of the year 2018 and recorded a 12 percent yearly hike in the property market. On the other hand, Bengaluru witnessed sale of 11, 500 units in the same period. The real estate market of this city also recorded 127 percent increase in the number of newly launched projects.
In the residential arena, the Mumbai city recorded launch of 8,600 housing units and Bengaluru witnessed the highest number of launches across the country particularly in the South Indian property market till 31st March, 2018, which was the last day of the first quarter. Following these two cities are Chennai and Hyderabad which recorded the sale of 2,100 and 2,600 housing units respectively.
Apart from the sold inventory, the unsold one stands at 5 percent and register 91,000 unsold housing units for the Q1 2018. According to a property expert, the average property prices in Bangalore is estimated to be around Rs. 4, 850 per sq. ft. currently.
The rapid growth in housing demand by professionals in Mumbai and Bengaluru lead to this boom in the property market. Many other reasons for this increase are better infrastructure, startup companies, smart connectivity, healthcare and better educational facilities nearby. The property experts also feel that the increased job opportunities in these areas is also a reason for the rise in demand for housing and workspace in Bengaluru and Mumbai city.