The real estate industry is going through an interesting phase at present. Several high impact policy events have entered the scene in the shape of PMAY, GST, RERA, and demonetization. And as we all know, these events have the capacity of making permanent and structural transformations in the industry. The consumer demand has also increased in the last twelve months as is evident in the recent data from Magicbricks. The number of property transactions was very less in the previous two years but according to the data, at present, there is an increase of 51 percent. The number of active buyers has risen from 3.4 lakhs in July 2016 to 5.3 lakhs in June 2017.
A lot of new buyers have entered the property market resulting in a significant increase of 25 percent. Whereas, those property seekers who have entered the market a month ago or more than that have also doubled in number from 1.4 lakhs to 2.8 lakhs. This shows that the consumers are taking more time to settle on buying a property. The budget segment ranging from 0 to 80 lakhs has seen the highest demand among the buyers with a 73% growth during the previous year. This was followed by a decrease in the growth of luxury and mid-market segments at 13 and 28 percents respectively. But this growth is not the same in all the cities, with that in Kolkata, Mumbai Chennai and Hyderabad leading it.
So, what is motivating people to buy homes?
- The introduction of RERA and other such Acts are protecting the consumers’ interests.
- Rates of home loan are continuously softening.
- Timely completion of the real estate projects
- Governmental schemes like CLSS and PMAY are offering affordable housing
- Last but not the least, the ongoing urbanization and the urge of owning a home
However, the number of transactions is nowhere close to the above-mentioned numbers. But the increase in the number of buyers is expected to transform into transactions at the dawn of the upcoming festivals. Let’s hope for the best! If this reading has helped you then you may contact us at Transventor Property Management Services Ltd. We effectively cater to all your requirements regarding the buying, selling or rent of any property.