Residential realty sees recovery signs
A survey by Liases Foras Real Estate Ratings & Research, property research firm, has revealed that after a tepid activity for much of last year Indian homebuyers are slowly showing enthusiasm about buying property again. The dismal performance of the realty sector was the product of the economic slowdown and uncertainty over incomes and jobs. The optimistic observation is based on the sector’s performance during the October-December 2019 period. 27 out of 35 cities recorded a 5% quarter-on-quarter increase in home sales in the third quarter of FY20 and a 3% year-on-year rise; a significant improvement from the second quarter (July-September) performance when annual and sequential sales fell 2% with 22 out of the 35 cities seeing a drop.
“The year 2018-19 had seen a marginal decline in both sales and launches. The downward slide has now been arrested and the trend is reflecting an upward movement. Time correction has improved homebuyers’ affordability. And with inquiry levels going up, builders have garnered confidence to launch more projects,” explains Pankaj Kapoor, MD, Liases Foras Real Estate Ratings & Research.