What Are The Key Trends In Residential Properties In India?
The key trends in residential properties in India are reported to be in favour of the investors. It is estimated that India will outperform in the global market and a growth rate of above 7% is estimated in the coming years. This high growth in the national economy will have a direct impact in the real estate sector. Other factors also have contributed to an increased vigor in the residential property market in India. Owing to the recent economic downturn, there has been a price decline in the property market. This has created a new interest in property purchase. Again, the better job market with higher earning potentialities has added force to the momentum in the market. The private sector employment has become more rewarding than ever before. Also, the revised salary scale recommended by the recent Pay Commission report ensures a much better payment for the Central Government employees. These factors have a direct impact in the increased interest in the residential property sector in India.
Recently, the trend in residential property in India has turned towards affordable homes. Hence, most of the construction companies have started new projects of smaller apartment units. As expected, such smaller size residential units have better demand and both listed and unlisted companies are entering this field. Listed companies like Unitech, DLF, Omaxe, Ansal, Puravankara, etc. have commited huge investment in this sector. Unlisted companies like Tata Housing, the Delhi-based Raheja, Lotha group, Matheran Realty of Mumbay, etc. are active in the house segment for the lower middle class.
Knight Frank, the internationally reputed real estate consultancy firm, has estimated that in the coming years there will be the requirement of no less than 2 million affordable housing units in India. Approximately 80% of this requirement will be in the Rs.3-5 lac income group. Estimably, this affordable housing demand will reach a market size of Rs.3 lac crore by 2011. The implementation of the sixth pay commission recommendation made the Central Government employees eligible prospects for the residential property in India. It is felt that developers have realized that low price structure is what makes the market live again. This has given them confidence to invest heavily, but in the rising demand curve, if the price factor is not kept low, the market may again face a slump. This new revival is not so great as to give confidence about quick recovery, but there are positive signs that residential property sector in India is in for a revival.
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