By Soniya Gaonkar on Jul 28, 2022 1:17:30 PM
Major industrial belts, SEZs and IT hubs are experiencing bottlenecks as more and more employees are heading back to factories and offices.
What Does This Mean?
This is a clear indication of a strong recovery and price rise in the real estate market. As economies reopen, commercial and residential real estate is experiencing one of the most powerful recoveries of the past 30 years. But employees’ return to the office can’t stand tall without market statistics. So here are a few figures to concrete the statement.
According to the Real Insight Residential 2022 Report, 70,623 units were sold in Q1 2022 as compared to 66,176 units sold in Q1 2021, showing 7% annual growth. Similarly, on the supply side, a total of 79,532 units were launched in Q1 2022 as compared to 53,037 units in 2021, showcasing YoY growth of 50%.
Moreover, after a long period of muted growth, prices of apartments in India’s mega cities have also started to show intensive growth. The recent real estate report shows that all the eight markets (Ahmedabad, Delhi, Chennai, Pune, Bengaluru, Mumbai, Kolkata and Hyderabad) underwent an upwards movement in average rates of new properties.
The real estate sector, which is highly dependent on bank financing for both builders and customers, is worried that rising rates due to inflation will impact post-pandemic recovery and slow down real estate sales.
Though the current repo rate of 4.9% (after 90 point) has slowed real estate sales, it has not diluted the spirit of prospective buyers. This is mainly because real estate has given proven results in the last two to three decades. Even in Covid, the real estate market did not dwindle like the share market.
The RBI is tasked with controlling the spiraling inflation in the country, but it is also careful not to harm the demand recovery. Being said, experts believe that a solid real estate market recovery is inevitable. So, buying a property now can be very beneficial for the future.
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In this scenario, while purchasing a home, buyers must exercise caution and make a swift judgment. Waiting for long won't help as inflation is rising daily and real estate prices can touch the peak.
In this market, the choice of ready-to-move properties will have greater demand because the prices won't increase right away. Although inflation is a huge worry, if you play your cards well, you may certainly find a method to avoid it because once real estate values rise, the chances of having a drop are uncertain. So, rather than waiting for the ideal circumstance to purchase real estate, act now.
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Be it healthcare facilities, educational institutions or other essentials, Coral has got your back. The project also maintains close proximity to key destinations of the city like – Baner, Wakad, Kothrud, Shivaji Nagar and more.
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