In spite of growth and improvement in sales of units, the real estate development rate recorded a decline. It is attributed to international economic recession’s pressure and job cut in domestic companies.
These factors are likely to impact the sale of the properties.
In fact, prices of properties have registered 6% growth. In the second half of 2022, the threat of global economic recession was looming large, yet the sales of houses have registered an increase.
During Jan-March, the growth registered 15% to 17%. Demand for houses is continuing in the market. However, the growth rate of realty sector is on the decline, according to tell-tale evidence available. This is attributed to increase the rate of interest on mortgages. It is predicted that the purchase of houses in April-June and July –September quarters would be on the decline.
When it comes to taking up the office space, the growth is on retardation. It is attributed to global MNCs have suspending their commitments or temporarily putting off their leasing of the office space for the time being.
Therefore, the Grade-A office space taking up activity was registered very less compared to the expectations.
This happened in spite of there was no economic recession in the country. If the recession were to continue in countries like the USA, it would have adverse impact on India.
In such a scenario, people would prefer to postpone spending money leading to put off the plans to purchase houses. On the other, the prices of houses are on the rise annually from 5% to 7%.
The cost of properties, depending on the location and status of the project, is increasing between 1% and 3% every quarter. However, the prices of affordable housing units would not undergo major change. But the prices of homes in the middle range and premium segments are likely to go up further.
