NRI Property Buying Checklist

Feb 13,2020 / By Prahalad Singh / No Comment

NRI Property Investment is the most discussed but least known topic. The reason being, it is considered to be too difficult. The rules and regulations ruling NRI Property Investment are different. There are two principal reasons for NRI Property Investment – 1) NRI’s would like to settle in India after retirement, and 2) they feel secure and safe to invest their hard-earned money in India compared to their home country.

What documents an NRI should check while buying a property in India?

The basic list of property documents that an NRI needed during property buying in India are:

Title Deed (in the name of the seller)
Sanctioned Building Plan
Commencement Certificate
Occupancy Certificate
Tax Paid Receipts
Encumbrance Certificate
Khata/Mutation Documents

What documents NRIs must have to buy property in India?

Below is the list of documents an NRI needed during property buying in India:

PIO/OCI Card

NRI requires an Indian passport to invest in property in India. He/she would need a PIO card if he/she is an individual, who is not a citizen of Pakistan, Nepal, Sri Lanka, Bangladesh, China, Afghanistan, Iran, and Bhutan but had owned the Indian passport.

He/she would require a PIO card if he/she is a foreign citizen whose father or grandfather was a citizen of India. In simple, if he/she holds the passport of a foreign country, he/she requires a PIO card.

PAN Card

NRIs need a PAN card because they will be required to file income tax returns if they have rented out the property. Besides, if the property is sold later, the capital gains resulting from the sales would be subject to capital gains tax. Capital gains would be included in the total income while it is being taxed.

Registered Power of Attorney

If you are an NRI and don’t visit India frequently, you would find it much easier to get the execution of the sale, registration, possession, and other processes done, if you give a special power of attorney to someone in the city in which you are buying a property.

Proof of Address

If you an NRI you need to submit the address proof of your current residence attested by the Indian Embassy in your country of residence).

Property registration formalities for NRI

As per current property registration rules, the title deed requires to have the photograph, thumb impression, and signature of the buyer. In the absence of the buyer at the time of registration, a Registered Power of Attorney can be assigned to your relative to sign the document on your behalf. This needs to be completed before the registration date.

What are the documents required for registering a property for an NRI?

Documents required at the time of registration:

PAN Card
OCI/PIO Card
Passport
Passport Size Photograph
Address Proof

What are the documents NRIs need while applying for a home loan?

If you are a salaried NRI and wants to apply for a home loan, you would need the following sets of documents:

Two passport size photographs
Address proof of the applicant and co-applicant (attested by the Indian Embassy in your country of residence)
Address proof (utility bills or driving license would count as address proof).
Past 6-months bank statement of your NRE/NRO account in India
Past 6-months bank statement of your account held in the country in which you work or your salary is credited
Salary slip of your employer
Loan sanction letter copies received in India and abroad
Self-declared residential status
Power of Attorney (to be executed in the format given by the bank and attested from Indian embassy)

Is TAN No required for the purchase of property from NRI?

TAN No. is not required if the property is purchased from a resident Indian. It is needed in case the property is purchased from a Non-resident Indian.

Can an NRI buy property in India without a PAN card?

PAN Card is not required for an NRI as they are non-residential Indians with Indian passports; particularly if they do not intend to invest money into any business in India. However, it is mandated by the government to own a PAN Card if:

An NRI is interested to invest in mutual funds in India.
The NRI wants to transfer the funds received from the property transactions in India to their NRE or NRO accounts.
They have a source of income in India that is taxable. For example; rented property

Does NRI need OCI to sell property in India?

Yes, they can but they have to pay the tax to the govt on the realize profit or gains. The Indian Govt. has provided general permission for NRI/PIO/OCI to buy a property and they do not have to pay any taxes even while buying a property in India. However, taxes have to be paid if they are selling the same property.

What is the tax rate for NRI in India?

An NRI who sells a residential property and earns capital gains are subject to pay tax, it’s the same as resident Indians. But for NRIs Long-term capital gains are subject to a TDS of 20% whereas the short-term capital gains are subject to a TDS of 30%.

Can an NRI buy any residential and commercial property in India?

Yes, an NRI can buy any commercial or residential property in India and there are no restrictions in buying the number of properties except any agricultural land, farmhouse, and plantation property. They can get the ownership of these properties only if they have been gifted or inherited from ancestors.

NRI doesn’t require any special permission to buy any residential or commercial property in India, except these two conditions:

When an NRI buys any commercial or residential property in India, he/she can’t make the payment in any foreign currency. An NRI has to use the normal banking channels, or any non-resident account such as Non-resident Rupee Account (NRE) or Non-resident Ordinary Account (NRO) to make the payment that comes under Foreign Exchange Management Act (FEMA) and RBI regulations.
NRIs have an option to give Power of Attorney (POA) to their friends or relatives to complete the buying process in India. The POA can be general or specific about the rights a representative of NRI can use.

The RBI’s regulations are fairly easy as well and you don’t have to take any prior permission from the authorities. The laws for any such property transaction fall under the Foreign Exchange Management Act (FEMA).

NRIs can make payment for the buying of immovable property (other than agricultural land/plantation property/farm house) out of funds received in India through normal banking channels. NRI who has bought residential/commercial property under general permission is not required to file any documents with the Reserve Bank.

An NRI can buy the property, either as a single owner or jointly with any other NRI. They must be a resident of India, otherwise, he or she is not allowed to invest in a property in India, irrespective of the second holder’s contribution.

Also, NRI may transfer any immovable property in India to a person resident in India.

What are the major complaints of an NRI during property buying?

There are some complaints from NRI regarding the behavior of the builder and other professionals. Overcharging is very common. Even the professionals doubled their fees in the case of an NRI client. Through these cheap tactics, we create a negative image of our country. In a few cases, NRI clients have left the idea of property buying after identifying the price difference.

Short Abbreviation:

PIO- Person Of India Origin
OCI- Overseas Citizen Of India
POA- Power of Attorney
FEMA- Foreign Exchange Management Act
NRE- Non-resident Rupee Account
NRO- Non-resident Ordinary Account
PAN- Permanent Account Number
RBI- Reserve Bank of India

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Is Indian Real Estate Sector Going to Revive in 2020?

Feb 11,2020 / By Prahalad Singh / No Comment

Real Estate Sector in India

The real estate sector in India has been witnessing weak sales for the last few years, resulting in a sharp drop in its significant contribution to the country’s Gross Domestic Product (GDP). Overall, the year 2019 proved to be a mixed year for the nation’s realty sector as the commercial sector flourished but that was not the case with residential real estate. However, some positivity has been seen in the market as a result of various announcements made by the government last year. Government announcements like NHB raising liquidity for Housing Finance Companies, relaxation of External Commercial Borrowings (ECB) funds, and approval of a Rs 25,000-crore alternate fund have all been made at a positive pace.

Nation’s real estate sector saw a fall after banks limited lending activity post the NBFC crisis in 2018 and the situation worsened further in 2019 to a sharp demand crisis. Not just the real estate sector but a large number of other industries indirectly related to the sector have also suffered the heavy winds of low demand.

Real estate developers, consumers, and investors have been facing the burden of the fall in the housing segment for the last few years. From unsold inventories to incomplete construction to delayed projects, the segments had faced a lot of difficulties that have been pointing to negative sentiments.

In spite of the government’s measures to revive the weak realty market, there has been no positive result except limited growth of just 1% in the year 2019 but far from reaching its full potential.

According to the International Monetary Fund, India’s economy grew by about 4.8% in 2019, a sharp drop from 6.8% in 2018. Similarly, unemployment rose to 7.5% in the last 3 months of 2019.

There is an urgent need to approach the challenge of liquidity suffered by the sector, especially after the NBFC cash crisis. Liquidity will improve sentiment in the market with a regular supply of ready to move-in homes. If the challenge is not tackled on priority, it will block the confidence of developers as well as buyers which may seriously affect the realty sector as well as the economic growth of the country.

Few bold govt measures that could revive the real estate market in the year to come including tax rebate hike, personal tax relief, higher liquidity, better land reforms and fast infrastructure development for raising homebuyer sentiments.

The industry body has also suggested the government to reconcile the Insolvency and Bankruptcy Code (IBC), GST and individual taxes to help increase demand for unsold properties, which increased sharply in 2019.

The reviving real estate sector would also improve overall demand as the sector employs a large number of laborers belonging to lower-income groups. As a result, it could lead to a strong rise in rural demand.

However, it needs to be noted that the measures are not yet sufficient in size and will not be able to cater to real estate developers (small and big) and players in Tier 2 and 3 cities. Most importantly, the measures need to be backed by other factors mentioned below to bring in a proper resolution. Instant step in terms of implementation of several schemes and processes is expected to bring momentum into the sector in 2020.

Budget 2020-21 Fails to Address Major Concerns of Realty SectorFreal estate

It offers a few solutions to revive the nation’s weak economy. The government’s $428 billion budget for 2020-21 considered a series of modest initiatives, including planned investments in new roads and airports and personal income tax cuts, along with an increase in bank deposit insurance to encourage customers worried by high-profile bank failures.

But it offered no large incentive plan to produce more jobs or money in the pockets of India’s 1.3 billion residents, most of whom rarely get their food through farming or work in the informal economy. Nor did the budget offer any additional support for the country’s weak financial institutions.

Few Govt measures that may put real estate back on track in 2020 includes:

Industry Status

For a long time, the real estate market demands an industry status that can help it with finances at a lower cost, especially at times when the availability of funding is a major barrier for the industry.

Single-window clearance

The sector, which is struggling to deal with multiple government offices for project approval, wants a single-window clearance facility to initiate the project implementation faster.

Removal of Multiple Rates or Taxes

Multiple rates or taxes need to be removed into a single standard GST rate.

Incorporation of Stamp Duty under GST

The cancellation of stamp duty or its incorporation under GST.

Lowering Interest Rates

In 2019, the Reserve Bank of India (RBI) reduced the policy rates (Repo Rate) by 135 basis points. But the registered commercial banks didn’t follow the procedure. So the average marginal cost of lending rate (MCLR) of banks has decreased by only 64 bps. The lower interest rates will benefit to decide the existing liquidity crisis and boost housing demand.

Rebate in Income Tax

Rebate in individual income tax will be another help to the sector as it will decrease the financial burden of the buyers and improve their expendable income.

Housing Loan Interest Rates to be Reduced

Interest rates on housing loans also need to be reduced to encourage demand and sales. Restoration of income tax gains on a 2nd home can benefit homebuyers in a big way.

Notional Rental Income

We expect the government to release organizations involved in real estate business from the burden of tax on notional rental income or the period of 1 year should be extended to 5 years. This is pushing buyers away from the market and affecting the sector as well.

Restriction on Home Loan Interest Paid

The govt should also remove the restriction of an additional deduction of Rs 1.5 lakh paid on a home loan up to Rs 35 lakhs with total values not exceeding Rs 45 lakhs.

The government should implement land reforms and amend the acquisition process.

People’s Expectations:

It is expected that the real estate sector will hopefully observe a growth story in 2020. Covering 1,600 projects with 458,000 housing units under the center’s announcement will help in raising buyer confidence and is expected to generate significant employment. We expect the govt to give full support to the sector not just in terms of the announcement but also implementation. The year 2020 needs a device to protect developers from the existing liabilities and stuck projects. It also needs to incentivize stressed projects in various ways.

At the same time, the central government has projected that the economic growth would rebound to as much as 6.5% for the current fiscal year.

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Real Estate expectations from Union Budget 2020

Jan 29,2020 / By Hozefa Sanwari / No Comment

Union Budget 2020 Expectations

The Union Budget 2020 will be presented on 1st February by the Finance Minister, Nirmala Sitharaman. Given the policy reforms undertaken by the government over the past couple of years, the real estate industry is hopeful that the upcoming budget will provide the much-needed impetus. The year 2019 saw the government take numerous steps to help improve market sentiment and revive real estate demand. Reforms such as capital gain benefit, tax exemption on notional rent, incentivizing Affordable Housing, the revised rental income limit for TDS, and thrust on infrastructure growth were highlights of the Union Budget 2019.

This time around, the sector expects the Budget 2020 to lower the GST rates on under-construction projects, increase the NBFC credit liquidity, implement single-window clearances for project approvals, redefine the Affordable Housing price bracket, allocate additional funds for PMAY scheme, and fuel investment in infrastructure.

In this backdrop, Commonfloor conducted a real estate survey on builders across India to capture their expectations from the Budget 2020. More than 300 builders participated in this survey to express their views and expectations.

The majority of the builders (31%) expect the Budget to lower the GST on under-construction projects. GST reduction clubbed with the revival of Input Tax Credit can provide relief to the builders and housing can be made available at lower prices. After the reduction in GST rates in 2019, the government had withdrawn Input Tax Credit. The next key expectation of real estate is to address the challenge of NBFC (Non-banking Financial Company) liquidity. Liquidity will ensure positive momentum with a steady supply of ready-to-move homes. Also, single-window clearances can aid in procuring quick approvals so that project delays can be avoided. In the past few years, Affordable Housing has been the major growth driver. Still, it needs some reforms as currently only those houses are awarded affordable status and subsequently reduced GST rate of 1% which has a carpet area less than 60 sq.m. and falls under the price cap of Rs 45 lakh (GST rate for under-construction house is 5%)

Around 50% of the builders surveyed feel that the increase in Home Loan tax exemption is the primary factor boosting real estate demand. A further extension to the existing 2-lakh tax rebate on home loan interest rates will push the fence-sitters to buy homes. It could result in a higher demand for housing, especially in the affordable and mid-segment categories. Interestingly, “Redefinition of Affordable Housing” and “Income Tax Removal on Notional Rent” got equal responses from the builder community. The abolition of income tax on notional rent from the second self-occupied house benefits those with two houses and encourages home buying.

One-third of the builders surveyed feel that the GST rates are the most vital component hurting homebuyers’ sentiment. Apart from GST, project delays and high property prices are the other factors that affect consumer sentiments. Builders feel that the initial aid of Rs 25000 cr last-mile funding for stalled projects is insufficient for the realty sector and that it needs to be executed on a larger level on a priority basis. Moreover, home loan interest rates and high government taxes such as stamp duty and registration could be reduced to propel demand in the market.

Foreign Direct Investment is a key driver of economic growth and a medium of non-debt finance for any country’s economic development. One-fourth of the builders surveyed responded that single-window clearance will streamline the approval process and can bring about a major boom in FDIs for the realty sector. The next two major factors that can drive FDI are ‘clarity on entry-exit norms’ and ‘stamp duty exemption on FDI transfer’. More FDI in real estate will provide the necessary thrust to the current slump in the market.

Builder Bytes

Ajith Alex George, Director of 42 Estates says, “The real estate category in India requires bold fiscal measures from the union budget. The sector is going through a liquidity crisis with stalled projects across India, an economic booster required for the industry as a whole. Ease of Funding both on the supply and demand side along with quicker processing can again make this one of the key growth sectors. Approvals of projects have gotten better however there could be better clarity on some of the norms and changes in regulations, especially around taxation. Single-window clearance and query handling can make the process easier for the sector.

From the home buyers’ perspective, interest rates on home loans have to be reduced, we have been hearing further reduction on personal tax rates and stamp duties, this can strengthen the buying power of the home buyers which will have a compounding impact on the industry as both residential and commercial projects would get a better demand-side environment. The government is already doing its bit with the PMAY showing good traction, a further increase in subsidy rates for affordable housing can further help percolate this initiative. These steps might give the much-needed boost to the confidence of the developers and buyers alike.”

Mr. Amarjit Bakshi, CMD at Central Park says “Initiatives have already been taken to aid the real estate sector, such as tax concessions and availability of low-cost loans for developers and buyers. Reforms were put into place to promote rental housing as well as boost affordable housing, empowering the middle class and first-time home buyers.

We expect policy changes to boost consumption in the economy and improved liquidity for the industry by easing fund availability for the real estate sector, enabling the sector to come back on track, since it generates more than 6.5% of the GDP. It is expected that to boost investor interest, the limit of home loan interest will be increased. Announcing an industry status to the sector will bring manifold benefits.

Conclusion:

The implementation of the above-mentioned measures will help revive real estate growth to a great extent and give a thrust to home buying sentiments, which in turn will revive the economy. To generate cash flows for struggling builders, it is quite evident that the stress fund will be a big boost, but it would address only a small portion of the stalled projects. The rest could only be addressed by NBFCs and banks.

The real estate sector has long needed an industry status that can help to procure finances at a lower cost, especially now, when credit availability is a major headwind. The momentum of infrastructure development should continue from last year so that growth is decentralized and migration to urban centers remain under check. The real estate sector is optimistic that the upcoming budget will usher fresh stimulus in terms of bold fiscal measures to outperform its growth from last year.

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Tips to sell your house faster.

Jan 24,2020 / By Supriya Mogarala / No Comment

When you are selling your house in a buyers’ or sellers’ market, the basic points to sell a house will never change. Buyers will be most interested in your house during the first few weeks it’s on the market, so you are in the best state to sell your house when your house is ready to be sold. Too often there are numerous homebuyers that are being trapped in selling their house. By using the below tips, you can expect an offer in very less time.

Few simple steps for how to sell your house:

Be sure if you really want to sell your house:

You will save a lot of time if you don’t start the process of selling your house even before you know if you are ready for it. Here are a few things that you must be assured about a few questions:

· Be sure if you can afford the cost of selling a house

· Be sure if you are ready to leave this house

· If you have built up enough equity in this house to sell

· If space is the issue with the house then is buying a new house a good move or not.

If you are sure about all the above concerns then you can go ahead for it. To sell your home fast, you must take an active role in this process. You must take note of all the potential flaws. Do your entire homework, just to show how great your property is.

Find the right real estate agent:

Every seller deserves a better agent. You must be choosing a real estate agent who will be as much involved in selling your house as you are and who will suggest you what’s wrong and what’s right and how can you improve it by helping you coordinate with everything that is involved in your home buying process. When you are choosing an agent to work with, take options and referrals from people whom you trust and who has been through the home buying and selling process. Consider your particular needs and find an agent who would help you develop your home selling process. You will definitely have a lot of options when choosing your agent, so choose one who is fit for your situation.

Choose the correct time to go on the market:

The Indian housing market has its own ups and downs throughout the year and the schedule is pretty set. You must watch out for the perfect season where it is more likely to watch when buyers will look to buy a house. If you are trying to sell your home faster, then you must take advantage of this activity.

Capture professional pictures of your House:

Pictures of your house are very important when the buyer will see your house, they will understand to schedule a meeting or not. Good photos should highlight your house and photos must consist of all the features of your house. Photos must be taken in such a way that the space looks warm and inviting as much as possible. Photos are one of the most important parts of the listing, so make sure that it’s done in the right way.

Price it appropriately:

Everybody wants to make as much money as possible by selling their house, but it’s important to be realistic about the property. If your goal is to sell your home fast then pricing it appropriately will help you sell your home faster. You don’t have to underprice it but just try to price it smartly.

Declutter:

As soon as you know that you are going to list your home on online portals, it is always better to remove clutter from your house. The less stuff you have cluttering your home, the more buyers will be able to see the space itself, and not the items occupying the space.

Depersonalize:

Buyers must be able to see the property clearly, and they will have a tough time if they are looking at your family photos. The sooner you can remove any items that personalize the home, the better you can present a blank slate to the buyers who want to buy your property.

Staging your house:

Decluttering and depersonalizing are part of staging your house but not all of it. To sell your house quickly, your house needs to be decorated in a way that highlights its best assets. You must rearrange your furniture to open up space. Painting your walls with neutral colors, repairing all the imperfections, getting rid of anything that your house does not want, holiday decorations and all such staging tips will make sure that you are developing your house that will appeal to buyers and will show the buyers that they won’t need to do much work when they move in.

Be accommodating:

The selling process can be a bit of pain, mostly when buyers start scheduling their visit and you should get out of your house. Arrange the schedule so that it is comfortable for the buyer but not ideal for you. If you suggest any new time then there might be a chance where the buyer will lose his interest and might not visit your property.

Feedbacks:

Some buyers will contact your realtor after giving feedback on the property, be it good or bad, but many don’t.it’s important to get clear feedback from every single agent to know if you are doing right or wrong. Make sure your realtor is always up to the mark with the buyer’s agent to get their view on the property and find out if buyers liked your house or not. Then use the feedback to make the changes accordingly.

The average time takes to sell the house is between 65-70 days, but it is unquestionably possible to sell faster than that if you take the time to optimize each aspect of the house selling procedure. You can do everything in your ability to make sure that when the right buyer will come along, they know instantly that they have found their perfect fit.

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Real Estate Round-up 2019: How India’s Real Estate Sector has Performed in Year 2019?

Jan 20,2020 / By Prahalad Singh / No Comment

Indian Real Estate 2019 Round Off

Real Estate is one of the key driving factors behind the growth of the Indian Economy and plays a pivotal role in the nation’s GDP growth. It is among the most recognized sectors globally. It creates millions of direct and indirect employment opportunities and supports the country’s development. It consists of 4 sub-sectors – Housing, Commercial, Retail, and Hospitality. The growth of this sector is well complemented by the growth of the corporate sector and the demand for office space as well as urban and semi-urban houses. The real estate sector of India ranks 3rd among the 14 major sectors that have a direct and indirect impact on all sectors of the economy.

The year 2019 has been a period of ups and downs for the Indian Real Estate Sector. There have been various policy and taxation related announcements in the last year. The market experienced the impact of the ongoing Non-Banking Financial Company (NBFC) crisis which resulted in a liquidity crisis and a slow pace of recovery in sales. On the other hand, the successful launch of India’s first Real Estate Investment Trust (REIT) opened new avenues for investments in real estate while multiple government SOPs provided much relief to the housing sector.

Post the policy reforms of 2017 such as demonetization, RERA, and GST, the residential market is absorbing the impact of these changes and is on the path to recovery. India continues to retain its position as the world’s fastest major growing economy on the back of improved investor confidence and better policy reforms.

The growth of the Indian Real Estate Market in 2019 has been driven by numerous factors including technology, improved ease of doing business, dust settling post the implementation of reforms such as GST and RERA, and demand-supply dynamics, among others.

It is also expected that the real estate sector will incur more and more NRI Investments in both the short and long term.

In the year 2019, the realty sector has experienced its highs and lows. Affordable Housing performed beyond expectations within the residential segment, while the luxury apartments continued to witness subdued sales. On the other hand, the commercial segment saw most of the investment flowing in as the year comes to an end. Whereas, other asset classes such as warehousing, Coworking, and Co-living gained momentum.

Initiatives are taken By The Government

If we look back at 2019, we can not deny that the government did not make sincere efforts to strengthen the sector. A series of reforms and policy changes were adopted. Some of them are:

Reducing GST rates to 1% for affordable homes and 5% for under-construction flats/apartments
The announcements about NHB raising liquidity to the housing finance companies
Relaxation of External Commercial Borrowing (ECB) funds
Creation of Alternative Investment Fund of Rs 25,000 crore for Stalled Housing Projects
Successive Repo Rate cut coming to 9-years low (total 135 basis points in 2019)
Tax holiday to first time home buyers
Relaxation in FDI norms for a single brand retail
The government slashed the corporate tax rate to 25.17% from 30% for existing companies, and to 15% from 25% for new manufacturing companies.
In 2019, consolidation continued in the residential segment. Those developers who are either on the verge of insolvency or have their project stalled continued to re-enter the market through joint development, or mergers.
Technological advancement in real estate too increased in the last year.

Post-2017 reforms such as Real Estate (Development & Regulation) Act (RERA), the inventory pile-up kept increasing across markets. New launches had taken a hit. Increasing unsold inventory became a cause of concern as liquidity challenges coupled with RERA deadlines made it tougher to deliver the project. In spite of the odds, those with deep pockets or leading names in the realty sector continued to outperform in 2019.

Since the start of this calendar year, there is a decrease in unsold inventory, which is a positive sign for the industry’s revival. In 2020, this is likely to reduce further to healthy levels. Another crucial factor for improved sales was largely stagnant property prices. Going forward, we may witness investors, funds, and lenders showing confidence to finance future projects. If employment levels improve and inflation kept under check, the revival of the sector isn’t distant. The year 2020 may well be the turnaround year.

Market Size

The real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13% of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.

Housing Sector

As per the CBRE report, it is expected that out of the 2.3 lakh new unit launches in 2019 in the top 7 cities, nearly 40% or approximately 92,000 units were in the affordable segment, followed by mid-segment with a 33% share. The luxury and ultra-luxury segments amounted to the least share with 10% (approximately 23,000 new units). Apart from that, Center Approves 3.31 Lakh More Houses Under PMAY(U) to fulfill the housing needs of the Urban poorer.

Housing sales in 2019 saw a modest 4-5% annual growth with over 2.58 lakh homes sold during the year.
New housing launches in 2019 saw an 18-20% annual growth with over 2.3 lakh units.

Commercial Sector

As per the CBRE report, office leasing increased by more than 30% annually to cross 47 million sq.ft. during the first three quarters of 2019, exceeding its previous high of 2018. The leasing exercise reached about 15.4 million sq.ft. during Q3 2019, rising by nearly 23% on an annual basis.

Commercial office space continued to be the most sought-after asset class.

Forecast

Since the start of the year 2020, there is a drop in unsold inventory, which is a positive sign for the industry’s recovery. And it will probably see a growing trend in 2020. We expect the hurdles in the real estate sector to get resolved. Stagnant property prices was another factor for improved sales. Going ahead, we may clearly see investors, funds, and lending houses showing confidence to finance future projects. If employment levels improve and inflation remained under control, the recovery of the sector is not very far.

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