Residential market facing volatility in the country
The residential market in India has been witnessing extreme volatility in terms of demand and supply over the last three years. Factors such as a slowing economic growth, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers and resulted in a dwindling sales volume.
Cities like Mumbai, NCR and Pune have faced the maximum brunt of this trend. While the demand in Mumbai and NCR dropped by 14 percent and 12 percent respectively during 2013, Pune witnessed a fall of more than 19 percent. This trend seems to continue in 2014 as well, with the sales volume decreasing by 25 percent, 37 percent and 30 percent in Mumbai, NCR and Pune respectively, during the first six months of the year.
However, the developer community has been taking these factors into consideration and have deliberately reduced the launch of new projects since 2013. The election results, sops for the housing sector in the Union Budget, and all the subsequent decisions taken by the Central government in order to revive the economic growth of the country seem to have changed the home buyers’ sentiment from negative to positive in the last three months.
Source: The Indian Express
Banks, demand in Mumbai, High inflation, residential market in india, Rising interest rates, slowing economic growth, union budget
