Rising interest in housing sector
A slowing economy, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers that resulted in dwindling sales volumes within the residential market.
However, the election results, sops for the housing sector in the Union Budget and the reviving economic growth of the country seem to have changed home buyer sentiments for the better in the last three months.The year 2014 is expected to clock a sales figure of more than 2 lakh 72 thousand with sales volume in the top six metros set to experience a phenomenal growth rate of 26% in H2 2014, compared to H2 2013. Even though the first half of 2014 experienced a high de-growth of 27% as compared to same period last year, the second half of the current calendar year will show a revival.
Mumbai and Bengaluru are expected to lead the recovery in sales volume, with 49% and 26% growth respectively, during this period. In contrast to this, the number of new launches is set to report a subdued growth of 5% in the next six months. Prices in Bengaluru have appreciated at the fastest pace of 11%, compared to H1 2013, followed by Hyderabad, at 9%. Pune has emerged as the most affordable city during H1 2014.
Source: Knight Frank
Banks, demand in Mumbai, High inflation, residential market in india, Rising interest rates, slowing economic growth, union budget
