India’s real estate market has ultimately recovered after seven long years in 2018. Along with higher sales, the inventory of unsold houses touched a new low. These positives were largely driven by the government’s incentives for affordable housing.
According to global property consultant Knight Frank, which analysed trends across top eight cities, “60% of the new launches in 2018 were within the Rs.50 lakh bracket, or the affordable and mid-range segment”. Another trend in the last two-three years was increased offtake in tier II and tier III cities. Property prices were, however, range-bound across most cities. Some regions such as Mumbai even showed a drop.
A study of 25 listed real estate companies by CARE Ratings Ltd shows that the revenue grew by 11.3% in the first half of FY19 over the year-ago period. Sales bounced back from the previous year’s low base, when sales were impacted because of regulatory hurdles and increased compliance under the Real Estate (Regulation and Development ) Act.