The Indian real estate sector has a reason to cheer along with the home buyers as there is a report of an increase in demand for affordable housing. According to a report, the sale of residential properties in all Tier 1 cities recorded a growth of 5% during the financial year 2018-19.
The MMR i.e. the Mumbai Metropolitan Region recorded the highest number of sales with 70,794 housing units and this number is higher than a quarter of the total sales figure in top 8 cities. Following the financial capital of India is the national capital Delhi that witnessed selling of 54,174 residential units and also contributed to 19.5% in total sales of Tier I cities, the report shows.
Apart from these two cities, the southern cities like Hyderabad and Bengaluru recorded a growth of 20 and 14 percent each while Kolkata also recorded a growth of 14percent in the sale of residential units.
According to the report, Pune showed the highest number of new project launch in Tier I cities. In the fourth and final quarter of the FY 2018-19, the city recorded growth of 14 percent in the sale of residential sector.
Real estate sector witnessed several policy changes which dampened the market sentiments in 2017-18. While the first half of 2018-19 was witnessed revival, the sector faced the distress in terms of a cash crunch after the leading infrastructure lender IL&FS defaulted in September 2018 shaking the investor confidence in other NBFCs especially the ones focusing on real estate.
The affordable segment contributed with Rs.25 lakh across all eight cities and the quarter closed with 17 percent growth of this segment.