A recent JLL India report has revealed that sales of residential properties have remained strong in India in the last quarter of 2017. The report revealed that cumulative new launches across top seven cities in India over the last 2 years i.e., 2016 and 2017, was recorded at 2,33,387 units. The sales of residential units at the same time was recorded at 2,44,830 units which reveals that the number of apartment units sold was higher.
Over the last 8 quarters, there has been an increase in sales in the real estate sector and a steady upward trend has been marked due to pent-up end-user demand. This has led to a bounce back in the real estate market, which has become more stable. The stability in the real estate market is due to the increased buyer confidence, post the implementation of GST, RERA, as well as other reforms which have now regulated the industry,
Overall unit sales were higher than the number of launched units by 5% over the quarter. The report also revealed that a large number of new projects were launched in the second half of 2017, due to the increased demand for property.
The projects which were launched in the second half of 2017 by developers saw a good response from buyers which will translate into excellent sales figures for the Jan-March 2018 quarter, the report revealed. The fresh supply of residential projects launched in the second half of 2017 was largely credited to the effects of the RERA implementation that was adopted by most states in India during the same period.
The stability in the market has been attributed to strong demand and supply. Ramesh Nair, CEO and Country head, JLL India stated that this is a good time for end users as well as investors to enter the residential property market, considering that prices have become stable over the last couple of years.
There has also been a reduction in the lending rates from banks since 2015, which has led to more end-users picking up their dream property. This is the ideal market for residential buyers to invest in property as the market is stable and home loan prices are lower.
In the last quarter of 2017, there was a huge increase in new launches of projects due to the stabilizing of RERA. The number of new launches which increased in the second half of 2017, also reflects the increasing confidence in the market by developers which are targeting future potential demand. This also indicates the strengthening of the transparency, governance and compliance standards among the developers. The current scenario is ideal for both developers and buyers.
