In the latter part of 2009, an impressive surge in values was witnessed in the residential real estate markets of the major cities across India. A report by Wakefield and Cushman highlighted that this trend was especially pronounced in two crucial residential markets: Mumbai and NCR. When comparing the end of 2009 to the corresponding timeframe of the previous year, values during October to December 2009 showed significant appreciation.
Given the high demand for both investing and living in Mumbai and NCR, these regions experienced a more rapid recovery compared to other urban centers. The economic downturn had prompted some investors to withdraw their requirements, creating a backdrop of uncertainty within the job sector. Conversely, this same downturn resulted in the emergence of affordable housing options for consumers, culminating in a dramatic rise in capital values and a robust resurgence of the economic environment.
In the NCR region, a considerable volume of housing projects was snapped up almost immediately upon launch, suggesting a strong appetite for affordable housing priced between 20 and 40 lakhs. A recent example includes Supertech, which offered 500 flats in Noida priced at 9.75 lakhs; these were sold out instantly upon their release. This evolving trend has fueled an increase in transaction volumes.
Nevertheless, this prevailing trend's sustainability is contingent on government intervention to retract the additional 10.3 percent service tax imposed on the sale of flats before they are completed, as declared in the 2010 budget. Such a move would enhance the appeal of ongoing construction projects.