As per the estimates the sales of housing units fell down by 4 percent in the last year to 2, 63, 720 dwelling units which is the lowest that’s been on record since 2010. The research firms opine that this has happened due to slowdown of demand in the realty market. This has happened opined the experts despite the positive measures taken by the government and the repo rate cuts by the RBI.

The NCR was reported to be worst hit by this slowdown in the realty market. The sales of the National Capital Region were recorded to be at a range of a six year low figure. This was reported by property consultant Knight Frank in a report which was released on 29th January, 2016.

As per the report the new launces dropped by a whooping 21 percent in the year 2015 at a figure of 2, 44, 944 dwelling units or apartments. This happened in all the primary markets of the country which are the eight major metros and cities namely NCR, Chennai, Bangalore, Kolkata, Mumbai, Pune, Ahmedabad and Hyderabad. The unsold stock margin dropped marginally from 7.14 units in 2014 to 6.91 units in the year 2015. The estimates further say that the unsold stock would take 2.5 years to be exhausted.

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The expert realtors also remark that the commercial and the office sector showed quite a promise and did a record sale after the year 2011. But the residential sector did fairly badly. This makes them comment that real estate of India 2015 was a year of mixed happening of both good and bad in . The commercial sector had record sales and absorption rates in the five year period and the residential sector on the contrary dipped to a five year low sales, said the experts commenting on the report forwarded by Knight Frank. This was the case even after there was a cut in the base repo rate by the RBI by 125 points and also the promotion of the festive season. In the NCR and the Delhi market the sales of the housing units went down marginally to 48, 503 units in 2015 from the figure of 48, 630 units in the year 2014. On the other hand the new launches of homes also fell down by a shocking 20 percent compared to last year. But interestingly enough the National Director of Knight Frank (Residential Agency) Mr. Mudassir Zaidi said the prices surged by an average rate of 3 percent in the year 2015. But this is also observed that the growth rate has plummeted from 9 percent in 2014 to 3 percent in 2015.

The estimates and the surveys also point out that the office space demand was too high due to which the vacancy levels of office space is too low now. The result is there is a surge of the rental prices added the experts. The year 2015 recorded the growth of IT and the ITeS segment with startups and the E-commerce significantly contributing. The experts noted that they have to watch whether this trend continues in 2016.

16 Responses

  1. kishore

    I got an excellent information by reading this article because the government of India increased the home loans and decreased the interest rates.I am also planning to build a house the government of India has given a great support to me.

    Reply
  2. Arvindh

    However, as a middle class person we were thinking and have calculations on the interest rates, EMIs, home-loan limits to buy home, but now Govt and RBI has made some favors to Home buyers buy increasing the home loan limit and deduction in interest rates etc.

    Reply
  3. Richardh

    2016 is the best investment period to invest in the real estate because there is many gifts from the Government in the form of new real estate bills and RBI increased the home loan limits and decreased the interest rates. I think people, will don’t miss this opportunity.

    Reply
    • Jayaprakash

      Even I was also planning to buy homes through the home loan but I was unable to buy because due to the home loan limit and interest rates were mismatched with my budget. Now RBI increased the loan limit and decreased interest rates also. Just last month only I bought flat in home loan and I’m very happy about the RBI’s decision.

      Reply
    • Amar

      Of-course it’s the best time to invest in real estate where people can able to buy through the home loan and even they get negotiation for reason of unsold stock.

      Reply
  4. Jay

    This leaf year is a wonderful of opportunities to invest in real estate market. There is many unsold flats, home loan limit is increased and loan interest rates decreased. It is the best time for all home buyers and investors too…….

    Reply
  5. Nagesh

    This is one of the best article posted by you till now. Keep posting these type of useful articles to many people.

    Reply
  7. Rajababu

    These 8 are the fast growing cities of India in every field. So the 4% also implementing in this cities. This is useful information.

    Reply
  8. Sundhar

    This 4% is most useful for home buyers and investors to get more profits from realtors.

    Reply
    • Mukesh

      Hi Sundhar it is only useful for the home buyers not to the builders. This is happening because of the unsold stock and Govt. and RBI’s new moves in home loan etc.

      Reply
  9. Chetan

    It’s the effect of the Govt. real estate bills and repo rate cuts and unsold stock. Now customers can buy much more affordability and negotiation along with offers.

    Reply
    • Abhi

      Due to the effect of unsold stock and recently changes in home loan policies and real estate bills which is in favor of customers where they can buy homes with the good negotiation price.

      Reply
  10. Purushotham

    Very useful article, plummets information is most required for customers.

    Reply

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