On the outset, I would like to wish you all a Happy New Year! Hope this year will make all of us much healthier, wealthier and wiser.

In early 2000s, the next steps were mostly predictable in real estate sector. Most developers leveraged themselves and launched more than the market could absorb. The massive supply combined with lack of transparency resulted in a lot of pain not only for the developers but also for the economy, banks as well as consumers. And then the last 10 years have been very eventful for the Indian residential real estate sector.

The past 6 years had been rough for the residential real estate sector. Demonetisation, RERA, GST all were very good steps to increase case of doing business and transparency. However, almost 2-3 years the market was disrupted owning to many misconceptions. Once markets started to settle and started doing business in new ways, the liquidity crisis had created lot of pain for developers. Then came the pandemic, causing a short term aberration wherein inventories piled up and developers hit the brakes on new launches. In this period, people started to realize the value of owning the right home.

Even millennials started to shift their believe from sharing to owning economy. The hard times, however, seem to be over now for both developers and buyers alike. As the prices are steady, it continues to be an excellent market for buyers. The biggest draw however, is the all-time low interest rates and also the last mile funding that is provided by the government to the developers.

The sales have started to improved, developers have stepped up on project launches. Real estate consultant JLL says 32,863 units were launched in the July-September 2021 period, up 21% from 27,057 in April-June 2021. Just for comparison, 12,654 units were launched in the September 2020 quarter. According to property consultant Anarock, the overall housing sales share of the top 8 listed players rose to 22% in 2020-21, from just 6% in 2016-17. Non-listed big developers increased their share to 18% from 11% in the same period.

A healthy environment fostered by low home loan interest rates is set to continue as the RBI has kept key policy rates unchanged for the eighth consecutive time in early October. With housing demand expected only to pick up the pace, this bull run could be just the beginning of many.

Source– Source: Anmek Report, Times of India, Me and The Hindu

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