Home Sales Get an 'Affordable' Boost, Increase 13% in FY-2018

Housing Sales Witness Incredible Boom, Rises 13% in FY 2018

Home sales has recorded 13% rise in Financial Year 2018 in top eight cities in India in a sign which could show the rise of recovery in residential real estate. Led by mid-income groups and affordable housing, the growth comes after 5% rise in sales in the market last year.

Mumbai Metropolitan Region has seen over 25% of growth out of major markets, according to a data shared by Liases Foras Real Estate Rating & Research. Next in the list is Delhi/National Capital Region which has seen 19% hike in sales this year. With the drop of 15% and 5%, Chennai and Bangalore have gone a new low. On the other side, Hyderabad has seen the growth of 17% in sales.

Affordable housing has been the mainstay of demand as contribution of the real estate housing segment to overall sales stood at 18% in tier I cities like Delhi/NCR, Mumbai, Bengaluru, Hyderabad, Pune, Kolkata, Chennai, and Ahmedabad during fourth quarter.

Pankaj Kumar, MD, Liases Foras Real Estate Rating & Research said, “New product launches are the main reasons behind increasing sales in all real estate segments. The sales are usually increasing because of the growing interest on affordable housing and mid-income groups. The sales have been improving thanks to competitive pricing, financing schemes, and easy installment schemes.” Important impetus and lower rates of home loan interest from the government to affordable schemes are the major driving factors behind driving sales.

The government has also been helpful to improve the housing sector with lower GST rates, affordable housing fund, extended benefits of income tax to 645 sq. ft. apartments and improved tenure of loans with Credit Linked Subsidy Schemes under PMAY or Pradhan Mantri Awas Yojana.

Ashok Chhajer, CMD of Arihant Superstructures said, “We have sold 925 apartments in total with over 75% of improvement against over performance in 2016-17. Out of 925 apartments, 850 flats are priced no more than Rs. 50 Lakh. So, affordable housing is definitely increasing.” Arihant launched three leading projects in Jodhpur and Navi Mumbai. The 10% lower prices and compact-sized homes are helpful to get good response from the buyers.