Eela | 1BHK Flats in Punawale, Pune | Buy 2BHK Flats in Punawale, Pune

Address: S.No. 34/2/1, Marunje Road, Opp. Balaji Mandir, Punawale, Pune 411 033
Mobile: +91 8411 883 838 | +91 8411 882 828

Real Estate Slowdown: 5 Factors That Can Revive The Sector | Buy Properties in Hinjewadi, Pune | 1BHK Flats in Wakad, Pune

blog3
The real estate slowdown in India appears to be taking much longer to get stable. The sector has been going through a rough phase with inventories piling up and sales down. Declining consumer trust in the sector can be revived if developers exhibit appropriate construction progress in order to avoid fear of delays in completion. To counter sales developers have shown caution with controlled launches. However, if market trends were anticipated beforehand such moves should have happened earlier. Sales of residential units declined significantly over the last two years, particularly in the initial periods.


The number of units that are sold from both new and old projects every quarter form the sales rate, and from 14% in 1Q13 this has steadily declined to below 9% as of mid-2015, thereafter remaining stable at low levels, according to global property consultant JLL India. The report further added that the slowdown trend has been observed in seven leading metros with the situation particularly grim in markets such as Delhi-NCR, where the sales rate has declined by 10%. Despite a big fall in Pune, Hyderabad and Kolkata, the sales rates of these cities still remain in double-digits at 12-13%.

Mumbai's fall was moderate, owing to low sales rate throughout the said period. Suvishesh Valsan, AVP – research & real estate intelligence service, JLL India lists out five broad factors that influence real estate markets, including country's GDP and employment scene, credit availability, interest rates, housing supply dynamics and consumer confidence. These factors indicate the formula for revival could lie within the reach of builders and policymakers.

GDP and employment scene: In contrast to the housing sales rate, India's GDP has been rising consistently over the last two years from 6.9% y-o-y growth in fiscal year 2013-14 to 7.3% in 2014-15, and is expected to be over 7.5% in 2015-16. Also, the monthly reports of leading recruitment firms in India suggest that hiring activity has picked up pace, particularly in the last year.
Credit availability: RBI data on the growth in home loans as well as the growth in credit to the construction sector (including loans to public housing agencies) reveals healthy credit offtake. Home loans have grown at a 17% y-o-y average over the last two years (until May 2015) whereas bank credit given to the construction sector grew at 22% y-o-y – one of the highest levels of all sectors.
Interest rates: CPI inflation has declined sharply by around 3% in the last two years and it now stands at 5% (as of May 2015), which is well within the comfort zone defined by the Reserve Bank. Consequently, the RBI has responded with three rate cuts (totalling 75 basis points) since the start of 2015, with a possibility of more rate cuts in the near-term.
Housing supply: Developers have consistently launched close to 60,000 units every quarter since 1Q13 despite the slowing demand. As a result, developers' unsold stock has mounted, particularly in NCR-Delhi, Mumbai and Chennai.
Consumer confidence: With above factors portraying a positive picture for the economy, the influence on consumer confidence is positive. This is also borne out by various market reports. However, the rising consumer confidence has not translated into higher demand for apartments.

Housing Finance Companies Beat Note Ban Blues, Rep...
Tips For Buying Flat in Pune | 1BHK in Punawale | ...

Related Posts

Call Now Enquire

Disclaimer

This website and its contents are purely conceptual and merely to assist reader to navigate into images, architectural drawings, area, & other information only. Siddhashila Developers does not take responsibility that may arise from any information given in this website. None of the objects/representation mentioned herein constitute a legally binding offer or invitation to treat.

Siddhashila Developers reserves right to add, delete, alter or in any manner change the plans, specifications, images, architectural drawings, prices, data & other information in its endeavor to make improvements as and when required without prior notice or obligation. The images, layouts and maps presented in this website are for indicative purpose only. Artist's impressions are used to illustrate some products and features.The actual elevation may vary form the Artists impressions depicted. The information in the detailed floor plans, sections are indicative and not to scale.

Siddhashila logo is a registered trademark. All rights reserved. The contents, service marks, graphic images, layout, information, text, opinions and material contained in this website are the exclusive property of Siddhashila Developers. No person shall use, copy, reproduce, distribute, imitate publish, display, modify, create derivative works or database, use, transmit, exploit, sell or distribute the same in whole or in part or any part thereof in any form or by any means, electronic, mechanical, photocopy, recording or otherwise without prior express written permission from Siddhashila Developers.

All amenities and specifications are as per availabilities and discretion of the developer. Nature and locations of all amenities and proposed development shown in the proposed master plan can be added, omitted, or shifted as per the developer' discretion.