A recent report by JLL India shows that the homebuyers are regaining confidence in the Indian real estate market. This reinstated confidence resulted in increased residential property sales in seven major property markets in India since 2018 till the first half of 2019.
Hyderabad topped the list of all the seven cities that have witnessed increase as the residential property market recorded a high of 22% in sales across the country, the data shows.
In the first half of 2019, the Hyderabad city recorded the growth of sale by 65%, Delhi NCR property market followed the trend with 42% according to a year-on-year basis.
The market has been dominated by both affordable housing and the mid-income as they have a share of more than 50% across the top cities. The reduced GST rates on affordable homes to 1percent from the earlier 8 percent that too without the input tax credit (ITC) is the main reason behind it. The slashed GST rates on the under construction projects from 1 percent to 5 percent is also a reason behind this increase.
The sales figures are likely to fluctuate as the Government plans some more policies.
Ramesh Nair, CEO & Country Head, JLL India said that the introduction of reforms and increasing interest of homebuyers gave a push to the Indian real estate market. The homebuyers mostly prefer ready-to-move-in projects in most of the cities and the second preference is given to the projects that are close to completion. The developers are also focusing on the timely completion of projects.
The launch of new residential projects is declined by 11percent on a year-on-year basis in all major cities, the report added.