The unabated rise in the housing demand this year, has set the stage for fast retrieval of the last ground , paving way for strong growth in residential real estate in the coming years.
A recent report of Magicbricks’ PropIndex points to substantial rise in both demand and supply of housing. While demand in the September quarter grew by 13 percent qoq, on the supply side, there was a growth of nearly 8 percent sequentially. Considering the consistent pick up in residential real estate, big property consultancies project 30-40% increase in housing sales this year , with new supply expected to register 30% growth. High affordability, both in terms of property prices and mortgage rates, has been instrumental in driving the notable recovery . This is clearly evident from the rising sales of affordable and mid-segment housing. Going by the industry projections, the residential real estate market will see a new peak in two years.
Says Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” Both affordable ( between Rs 20 lakhs- Rs 50 lakhs) and mid-priced ( Rs 50 lakhs- Rs 1 crore) segments have been the dominant contributor to the rising demand and supply. And going forward , these two segments will continue to drive the growth of residential real estate.