Real Estate Market Showing Signs of Improvement in India
BENGALURU: The real estate market in India is limping out of the slumber says the recent report from Proptiger. Improvement is sales reported for the first time in the last 10 quarters comes as a breather for the real estate residential market, reports Srinibas Rout.
The report titled Realty Decoded Q3 FY’16 mentions that cities including Ahmedabad, Kolkata, and Hyderabad witnessed increased launches compared to that in Q3FY’15. Stability in prices can be expected due to the tangible signs of recovery in most cities.
Affordable segment is doing much better than the luxury segment with over 50 percent of sales but luxury segment has plenty to look forward to as there is a consistent increase in sales. Greater demand has been witnessed across the cities for a budget of not exceeding 75 percent with the exception of Mumbai and Gurgaon.
Bangalore rose by 13 percent over the last 10 quarters while Hyderabad in close on the heels standing at 12 percent. Factors such as subsiding inflation and softening of policy rates may also catalyze the real estate market growth, says the report mentioned by Silicon India.
Governments Chipping in
Both the ruling central government and the state governments are taking measures to help the real estate sector growth. The cabinet gave green flag to 20 major amendments to real estate bill. The government also partially relaxed FDI norms for the real estate sector. Rajasthan Housing Board cut down the additional charges, UP government is promoting green buildings by offering no additional tax, Haryana enabled real estate developers to set up more development projects, and Maharashtra has annulled ban on the fragmentation of non-agricultural lands measuring 2,000 square meters or less.