Report, Real Estate News, ET RealEstate
Pune led the sales activity with a share of around 26%, followed by Mumbai (19%). It was closely followed by Hyderabad and Delhi-NCR with 18% and 17% shares respectively.
Anshuman Magazine, President, India and Southeast Asia, Middle East and Africa, CBRE, said, “The residential segment has played a major role in the growth of the real estate industry in India. The initiatives undertaken by central and state governments have been crucial and laudable in reviving the residential segment. “
Political impetus from central as well as state governments, coupled with lower lending rates, has encouraged home sales, according to the report. States like Karnataka, Telangana, Maharashtra and Tamil Nadu have introduced stamp duty cuts and property tax rebates to boost home sales.
While real estate prices have increased at a CAGR of 1-6% in the high-end segment and around 2-7% in the mid-segment since 2010, GDP per capita has increased at a CAGR of 4 % between 2010 and 2020.
Although the residential sector is experiencing green shoots of recovery, developers still face issues such as limited availability of credit, fiscal and regulatory complexities, construction delays due to labor shortages caused by reverse migration (although to a large extent), increased cost inputs leading to increased construction costs; The highly leveraged balance sheets of several developers have added another layer of challenge for the industry, the report adds.