The nod to the 7th Pay Commission has boosted the moods of not just the Government employees but the real estate sector as well it seems. Signs are positive and a pick up in real estate is due soon.
According to a report by Knight Frank, the office spaces especially in IT and e-commerce is already on rise in the second half of the year. The sales have shot from 1,26,616 units in H1 2015 to 135,016 units in H1 2016 after a dry span of 3 years now.
This rise can be contributed to the consumer friendly plans that are being laid.With the demands of big houses plunging, developers have focused on changed product line that offers smaller spaces in affordable price range.This had definitely turned up the market.
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“There is a hike in the number of units sold because of the rise in sales of affordable housing units. Over the last couple of years, the developers have changed their product offering by reducing the size of the units so that the affordability increases and this is resulting into a pick-up in the sales velocity,” said the head of a Singapore-based private equity fund operating in Indian realty sector.
Not just the affordability factor, the upswing in the economic activity is also one major key player that has benefited the investor sentiments and real estate markets.
While this is a good news for developers, the condition in Delhi-NCR continues being grim.The sales for the market declined from 25,000 units sold in H1 2015 to 23,092 in H1 2016.
The downfall of new projects is proving out to be one breeze of fresh air to the whole market as well as it’s leading to sales of unsold inventory to boom.From a high of 7.14 lakh units in H1 2014, the unsold inventory has come down to 6.6 lakh in H1 2016.
The 7th Pay Commission is going to add all possible wheels to the cart by the increase in incomes and pickup in the commercial demand. With the larger disposable incomes, interest in the residential estate is definitely going to be on the checklist of many. And with the Real Estate Protection Bill, an aide to the home-buyers against prices and improved practices will ensure that from here, the sale graph only goes above.