Housing demand remains subdued
Notwithstanding the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), and the Goods and Services Tax (GST), demand in the residential markets across cities remains sluggish, but the affordable segment is seen as the growth driver in the coming months, experts say.
And, to tap the investment sentiments associated with the festive season and counter the subdued markets, developers have started offering innovative marketing schemes aimed at increasing the sales of unsold properties.
“We are seeing some green shoots of revival in the housing sector, but they are very tender right now. GST and RERA have helped infuse a new sense of confidence among buyers, but there is still a lot of confusion about them and RERA has not even become a nation-wide force as yet,” JLL India’s CEO and Country Head Ramesh Nair told IANS.
He said more developers are now considering “moving into or expanding” their portfolio in affordable housing, that addresses the housing needs of the lower or middle-income households
“This is the only really vibrant segment in Indian residential real estate at the moment. Margins are low but demand, and therefore potential sales in terms of numbers, is extremely high,” Nair said.
Echoing Nair, Anarock Property Consultants Chairman Anuj Puri told IANS: “Affordable housing has gained fresh momentum of about 15 per cent in terms of launches in the last three months, as compared to the previous quarter.”
According to the latest research report by leading global real estate services firm Cushman & Wakefield covering the top eight cities of India, the affordable housing sector has recorded a surge of 27 per cent in new units launched year-on-year.
“Affordable housing is an attractive proposition for both developers and consumers as the demand is huge and largely unmet. The high focus of the central government has resulted in the availability of more funding options for the developers such as ECB (External Commercial Borrowing), FDI and debt financing from national financial institutions at highly competitive rates,” Shveta Jain, MD, Real Estate Private Wealth Services, India, Cushman & Wakefield, told.