Signs of Recovery in the Indian Residential Property Market
The Indian real estate market is showing encouraging signs of recovery. Sales have picked up, and prices for residential properties have risen by 5-15% over the past couple of months. Industry experts anticipate heightened activity in the property market during the upcoming festive season, provided developers refrain from further price increases.
Expert Insights
Aditi Vijayakar, Executive Director of Residential Services, India, at Cushman and Wakefield, shares, “The festive season (September-December) has historically been a buying period, with a large chunk of overall sales being converted during this auspicious time. Some developers see as much as 30-40% of the yearly sales taking place during the festive season.”
Price Increases Could Impact Demand
Vijayakar also highlighted the need for caution regarding price hikes. “Residential prices have increased by 5-15% from the bottom it made in the first half of the year. If the developers continue to raise the prices then the renewed demand and interest that is being witnessed will start to abate,” she warned.
Recovery and Market Dynamics
She further elaborated, “The previous year has been a taxing one for the real estate industry, and the initial signs of recovery are evident in the market. As most of the sales happen during the festive periods, developers have to be cautious not to hike prices in projects and new launches as this will drive out the end users and prolong the revival in the residential space.”
Increased Sales Across Cities
According to Vijayakar, most cities are registering an uptick in sales following a period of stagnation at the start of the year. With the economy stabilizing and returning to a growth trajectory, there is renewed interest in home buying. This increase in confidence, coupled with a better economy, favorable borrowing conditions, and rationalized capital values, among other factors, is promoting rising sales across India.