A Surge in Demand and Supply of Housing Properties
Here’s great news for those who have wanted to invest in real estate for a long time! The upcoming festive season looks prosperous for the real estate market in India. The steady momentum in the development of new properties prior to Covid-19 and a fall in the demand at the onset of the pandemic has created a massive supply and demand in the market. This will be beneficial for both the customers and real estate dealers.
Customers will get a plethora of properties to choose from. While developers will finally get to reap the fruit of their hard work. According to Anarock Research, there will be a 30% – 40% growth in newest property launches and sales for the present ongoing quarter (July – September). Consultants say that there will be 2 million square feet of launches in Mumbai Metropolitan Region (MMR) alone, during the festive months. An estimation of 25-30 big launches are awaited in the MMR.
As of now, about 36,250 units have been launched across the seven major cities in India in the second quarter of 2021. 24,600 units were sold during the same tenure. Mumbai Metropolitan Region (MMR) has seen a hike in investment by some of the renowned developers like; Prestige Estates Projects, Puravankara, Suntrek Realty, Oberoi Realty, and so on. As per Anuj Puri, the Chairman of Anarock Group, the relative decrease of Covid-19 cases and an accelerated vaccination drive will spike the housing demand and supply during the festive season.
Properties sold by Prestige Estates, Sobha Enterprises, Brigade Enterprises, Puravankara, DLF, Ashiana Housing and Godrej Properties account for 1.3 million sq. ft, 0.9 million sq. ft, 1.0 million sq. ft, 0.8 million sq. ft, 0.3 million sq. ft, 2 million sq. ft, 1.7 million sq. ft respectively for Q2 FY2. “Last year, developers were selling at a cut-throat price and were undercutting their inventory. So, the money that has got accumulated as a result of higher sales, they have incurred on acquiring approvals for the new projects. This means we will see lot of launches this year,” as said by Ritesh Mehta, Senior Director and Head (Residential Services and Developer initiatives), Western India, JLL.
The RERA and Subvention Scheme has boosted transparency and promises assured quality to the customers. The property buying experience has, hence, become more lucid and secure. This customer-centric approach has surely aided to the expected rise in demand for real estate. Larger houses are thought to be more in demand, with developers adding some extra space or a room to fulfill the customer’s needs.
The upcoming festive season has kept the real estate developing companies all geared up. Prestige Estate Projects aims to increase its market share from 50% to 100% in Bengaluru. Godrej Properties seeks to launch 13 million square feet of residential projects in the financial year of 2022. The ambitious resolutions come from the expected festive boom. After a long time, people are finally thinking about investing in properties. And the ample supply will assuredly make this a reality.