Prices of residential units are expected to rise in the by the end of this year. Earlier the same was expected in 2016 when real estate market was at peak but the announcement of demonetization held the property price in the same range. However, it is expected that second half of year 2019 will give a boost to the realty market of India and is likely to turn out to be a perfect investment hub. At least due to RERA launch, the risk has reduced to almost negligible in comparison to the profits long term.
This is indeed a favourable outcome for Delhi-NCR (National Capital Region) that saw major downtime in terms of demand as well as property prices. The last quarter of 2018-19 brought growth of 3.5% to the Delhi-NCR property market to over 13,270 units while realty market of Pune witnessed 1.3% growth to 11,200 units and Mumbai realty market witnessed 0.1% growth to 18,000 units in sales.
RBI has brought down the key lending rates two times in 2019 bringing the repo rate to 6% seeing the increase in sales of volume in the real estate. This is in fact, a positive move taken by the Reserve Bank of India supporting the realty sector. This will allow homebuyers to purchase home not just for living but of their choice.
This year the builders will have both their hands full of profits as the market will witness more demand with rise value of the property and some upshot from policies overhauls. However, in the first half of this year, it is expected that the sector may have to face liquidity crunch and launches of new residential projects are expected to stay at silent. By the mid of 2020, the market is expected to change vertically upward with rising demands and property value.
