November 13, 2019
The Government’s recent announcement to set up a Realty AIF to the tune of Rs. 25,000 crore to complete stalled projects is likely to give a new lease of life to the sector. But some of the trends are unlikely to change. Real Estate experts are of the opinion that it is the demand for affordable housing, which will continue to rule the roost for the next few years as noticed over the recent past.
“We have received tremendous response from customers during the festive season. In the 45 day season, our bookings have doubled as compared to the last festive season. The bulk of the demand is for affordable and mid-segment housing, which is also our strength. In the future too, we will continue to focus on this segment,” said Yash Miglani, Managing Director, Migsun Ltd. which is developing several projects across Noida, Greater Noida and Ghaziabad.
Not only Migsun, but the entire real estate seems to be focusing on the affordable segment. According to a recent research report by PropTiger.com, real estate developers are expected to deliver over 4.5 lakh affordable housing units in the coming 15 months. While the Mumbai Metropolitan Region would get homes delivered to the tune of 2.45 lakh, the NCR is expected to deliver over 2 lakh units in the next 15 months.
Agreeing to the same, Mr. Parveen Aggarwal, Founder and Chairman, Signature Sattva states, “The largest chunk of demand is for affordable housing, not just in tier II and III cities, but even in metros. This is one of the reasons that we are focusing and building our strategy around the affordable housing segment." Signature Sattva, which is one of the latest entrants in the realty sector is developing an affordable project in Alwar (Rajasthan) and is also set to foray in the Mumbai Metropolitan region soon.
A report by PropTiger.com, part of Elara Technologies Pte Ltd., that also owns Housing.com and Makaan.com shows that a total of 65,799 units were sold across the country during the quarter ending September this year as against 88,078 units during the corresponding quarter previous year. Interestingly, nearly half the units that were sold during the quarter are affordable homes.
Mr. Vaibhav Jain, CMD, Rise Group also echoes the sentiment of other industry players. “Affordable Housing is undoubtedly the key driver of housing sales, but the National Capital region being the hub of new-age entrepreneurs and wealthy people, we are witnessing robust response to our luxury offerings too,” Mr. Jain added. Rise Group is a leading name in the realty arena in Delhi-NCR and is developing several projects in the region including luxury villas in Greater Noida West.
The Government has announced a slew of measures in the last couple of months in the favour of Real Estate sector which includes realty AIF of Rs. 25,000 crore, linking home loan rates to repo rate or any other external benchmark approved by RBI and upfront capitalization of PSBs. The government had also announced an additional income tax deduction of Rs. 1.5 lac from Rs. 2 lac to Rs. 3.5 lac for properties up to Rs. 45 lac in its budget. Following these important measures initiated by the Government of India, the real estate sector is hopeful of a strong showing in the coming months.