The realty market in India is undergoing a massive change. The implementation of regulatory reforms such as Real Estate Regulatory Act (RERA) has given a certain direction to the real estate sector. The real estate sector is witnessing a resurgence across the country. It is vital for all the real estate projects to be following provisions of RERA to ensure that the projects are delivered on time.
Between the period of January to March 2018, the sales of residential units rose 12% throughout the top 7 Indian cities, compared with the earlier quarter. During the same period, sales of housing units also touched 49,200 units. This is much higher than the 43,800 units which were sold between October and December 2017 throughout the top 7 cities. The top cities are Bangalore, Kolkata, Chennai, Mumbai Metropolitan region, Hyderabad, Pune, and Delhi-NCR.
Only degrowth sales volumes were seen in Chennai. The sales volumes climbed 12% and stood at around 2,300 units for the first quarter of 2018, compared with 2,600 units sold in the last quarter of 2017. In Chennai, the prices of residential property were largely stable throughout the Q1 2018.
The supply of new residential units also rose by 27% and stood at 33,000 units for the Q1 2018, compared to 26,300 units which were added in the last quarter of 2017. In the city of Kolkata, the sale of residential units rose 42%, and stood at 3,400 units for the first quarter, compared to 2,400 units sold previously in the last quarter of 2017. Pune witnessed a surge in its sale of housing units, compared to 15% over the previous quarter. Bangalore and cumulative volumes were around 6,800 units and 11,500 units.
With a new real estate law slowing the launch and sale of under construction projects, realty developers such as Hiranandani Communities and others are promoting ready properties. With the implementation of RERA act in May 2017, many changes can be witnessed, like the ways to do business in the sector has been modified and the market sentiment has turned positive. As per the current trends, serious property buyers have returned to the market because of more transparency of developers.