+
 Indian real-estate sales likely to witness decline of 40-50%
Real Estate

Indian real-estate sales likely to witness decline of 40-50%

The overall primary sale of real estate in India will witness a deduction of around 40-50% in the top 10 cities in 2020, as per a CRISIL report. The market in southern India, with a larger share of branded developers, has performed better than the rest of the country.


The first half of the fiscal year 2020-21 witnessed a decline of 10-20% for the top seven listed developers while there has been a 40-50% decline in the top 10 cities, indicating a shift towards the key developers. CRISIL mentioned this trend was on display ahead of the pandemic and is expected to extend over the second half.


New house sales witnessed a surprise surge in the past couple of months, making the global pandemic-led disruption look like a mere blip. CRISIL stated the units sold in Mumbai and the rest of Maharashtra are 1.1 - 1.3 times higher compared with January this year.


The spurt rides on supportive measures from governments in key states. For instance, Maharashtra has reduced stamp duty by 3%, making it 2% up to December 2020 and 3% up to January 2021.


Karnataka has also decreased stamp duty by 2% for properties priced between Rs 2.1 million to Rs 3.5 million.


The buyer-centric market seems favourable for first-time homebuyers and fence-sitters as well as resale-flat buyers. There's also a renewed interest in sales for non-resident Indians.


With 'ready to move' inventory constituting 10-20% of the total inventory in key cities and upcoming supply this fiscal at similar levels, capital values are likely to remain under pressure at least for the rest of this fiscal year.


Although the overall rebound in real estate demand in October was faster than anticipated, its sustenance after the festive season will be monitorable, said CRISIL.


The overall primary sale of real estate in India will witness a deduction of around 40-50% in the top 10 cities in 2020, as per a CRISIL report. The market in southern India, with a larger share of branded developers, has performed better than the rest of the country.The first half of the fiscal year 2020-21 witnessed a decline of 10-20% for the top seven listed developers while there has been a 40-50% decline in the top 10 cities, indicating a shift towards the key developers. CRISIL mentioned this trend was on display ahead of the pandemic and is expected to extend over the second half.New house sales witnessed a surprise surge in the past couple of months, making the global pandemic-led disruption look like a mere blip. CRISIL stated the units sold in Mumbai and the rest of Maharashtra are 1.1 - 1.3 times higher compared with January this year.The spurt rides on supportive measures from governments in key states. For instance, Maharashtra has reduced stamp duty by 3%, making it 2% up to December 2020 and 3% up to January 2021. Karnataka has also decreased stamp duty by 2% for properties priced between Rs 2.1 million to Rs 3.5 million.The buyer-centric market seems favourable for first-time homebuyers and fence-sitters as well as resale-flat buyers. There's also a renewed interest in sales for non-resident Indians.With 'ready to move' inventory constituting 10-20% of the total inventory in key cities and upcoming supply this fiscal at similar levels, capital values are likely to remain under pressure at least for the rest of this fiscal year.Although the overall rebound in real estate demand in October was faster than anticipated, its sustenance after the festive season will be monitorable, said CRISIL.

Next Story
Infrastructure Energy

WattPower, First Solar Host Solar Connect to Boost Agri-Solar in Telangana

WattPower, a renewable energy solutions provider, in collaboration with First Solar, hosted a high-level industry roundtable titled ‘Solar Connect’ at Vivanta, Hyderabad. The event focused on advancing agri-solar deployment in Telangana under the PM-KUSUM scheme. The session brought together policymakers, clean energy experts, and project stakeholders to address the core challenges in scaling agri-solar infrastructure. The agenda included technical presentations by both companies and a panel discussion moderated by Pavit Gandhi, Director, Sales, WattPower. The panel, titled “Un..

Next Story
Infrastructure Urban

PM Modi to Launch Rs 12 Billion Projects in Bihar, Rs 5 Billion in West Bengal

Prime Minister Narendra Modi will visit Bihar and West Bengal on Friday to launch a series of development projects worth over Rs 17 billion, aimed at strengthening infrastructure, connectivity, and socio-economic growth in the two states.Projects in BiharIn Bihar, the Prime Minister will lay foundation stones, inaugurate, and dedicate projects spanning rail, road, rural development, fisheries, electronics, and information technology sectors.He will inaugurate multiple rail projects, including the automatic signalling system on the Samastipur-Bachhwara rail line for improved train operations. T..

Next Story
Infrastructure Transport

IRCON Secures Rs 1.87 Billion in Major Mumbai Metro and Rail Contracts

State-owned engineering firm IRCON International Limited announced on Friday, 18 July, that it has secured three major infrastructure contracts worth over Rs 1.87 billion. The awards include two contracts for Mumbai Metro projects from the Mumbai Metropolitan Region Development Authority (MMRDA) and one railway project in Madhya Pradesh from Rail Vikas Nigam Limited (RVNL).IRCON received a Letter of Award from RVNL for a railway infrastructure project valued at Rs 756 million (inclusive of GST) in Madhya Pradesh. The contract was awarded to the IRCON–JPWIPL joint venture, where IRCON holds a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?