The real estate sector has been in a prolonged slump for the past three to four years, and while there are no signs of a sustained turnaround in the offing, things have improved somewhat recently.<\/p>\n\n\n\n
In the first half of this year, for\ninstance, new launches shot up by 46% from the first half of 2017,\nthough home sales increased by only 3%, according to Knight Frank\u2019s\nlatest report. The data also shows that developers have been able to\nsell off some of their long-vacant homes, with the unsold inventory\nfalling by 17% year-on-year in the first half of the year, though it\nstill remains high at a total of 497,289 units.<\/p>\n\n\n\n
Developers are,\nin the wake of disruptions caused by demonetization and the\nuncertainty over RERA and GST, increasingly focusing on affordable\nhousing and launching smaller, more reasonably priced homes. (The\ngovernment\u2019s push for low-cost homes and the \u2018Housing for All\u2019\ninitiative are among the factors driving this shift.) Average prices,\nin fact, have fallen about 3% across India, as per the Knight Frank\nreport, which also notes that prices had reached \u2018unsustainable\nlevels\u2019 earlier this decade.<\/p>\n\n\n\n
Another trend that may affect the future of real estate is the growing formalization of the sector in the wake of GST and RERA, the new real estate law. RERA, in particular, accords greater rights to home-buyers and places stricter demands on builders; however, this can be beneficial to larger, more organized players in the market in the long run.<\/p>\n\n\n\n
Ultimately though, the future of the realty sector is still uncertain, as the effect of the implementation of RERA remains to be seen, and there are still challenges such as a lack of financing, especially from banks but also from other financial institutions and private equity investors.<\/p>\n","protected":false},"excerpt":{"rendered":"
The real estate sector has been in a prolonged slump for the past three to four years, and while there are no signs of a sustained turnaround in the offing, things have improved somewhat recently.<\/p>\n
In the first half of this year, for
\ninstance, new launches shot up by 46% from the first half of 2017,
\nthough home sales increased by only 3%, according to Knight Frank\u2019s
\nlatest report. The data also shows that developers have been able to
\nsell off some of their long-vacant homes, with the unsold inventory
\nfalling by 17% year-on-year in the first half of the year, though it
\nstill remains high at a total of 497,289 units.<\/p>\n
Developers are,
\nin the wake of disruptions caused by demonetization and the
\nuncertainty over RERA and GST, increasingly focusing on affordable
\nhousing and launching smaller, more reasonably priced homes. (The
\ngovernment\u2019s push for low-cost homes and the \u2018Housing for All\u2019
\ninitiative are among the factors driving this shift.) Average prices,
\nin fact, have fallen about 3% across India, as per the Knight Frank
\nreport, which also notes that prices had reached \u2018unsustainable
\nlevels\u2019 earlier this decade.<\/p>\n
Another trend that may affect the future of real estate is the growing formalization of the sector in the wake of GST and RERA, the new real estate law. RERA, in particular, accords greater rights to home-buyers and places stricter demands on builders; however, this can be beneficial to larger, more organized players in the market in the long run.<\/p>\n
Ultimately though, the future of the realty sector is still uncertain, as the effect of the implementation of RERA remains to be seen, and there are still challenges such as a lack of financing, especially from banks but also from other financial institutions and private equity investors.<\/p>\n","protected":false},"author":1,"featured_media":1774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[28,29,30],"yoast_head":"\n