The share of residential real estate increased from 49% in 2009 to 88% in 2020.
Housing needs have increased in Tier-2 and Tier-3 cities due to reverse migration.
The ratio of sale and supply of residential houses has started showing improvement amidst limited launch of new housing projects. According to a joint report by industry organisation FICCI and Enrock, the indian housing sector: The ratio of sales and supply of residential houses has improved to 1.36 in 2014, which was 0.63 in 2014. This means that 136 houses are now sold on the new launch of every 100 residential houses, while in 2014, only 63 houses were sold on the launch of every 100 new residential houses. The report was released at the 14th annual FICCI Real Estate Conference 2020 on Friday.
Affordability of mid income homes projected to reach 27%
Anuj Puri, chairman, Anrock Property Consultants, said that the report also says that the non-affordability of mid income homes in the business year 2021 will reach its loest-best 27 per cent. The business was at 53 per cent in the year 2012, since then it has been declining every year. Here, the non-affordability means the ratio of home loan payments and income.
Residential property price rises by 3% annually between 2012 and 2019
According to the report, the average price of residential properties in top 7 cities has increased at a mere 3 per cent rate every year between 2012 and 2019. This is much lower than the inflation rate and income growth rate. Puri said the value of under-construction real estate projects has increased 2.6 times from $94 billion in 2009 to $243 billion in the first half of 2020. The share of residential real estate has increased from 49 per cent to 88 per cent. This shows huge growth in the residential real estate segment.
Property sales of organized companies not declining
According to the report, while the total property sales have declined, the property sales of organized companies have not declined. This is because home Byers are taking more interest in purchasing branded properties, even if the price of those properties is high.
Demand for villa and row houses increased for social dissing
The new trend of work from home and online education during the coronavirus epidemic has led to some new trends in residential real estate. For example, the trend of 2.5 BHK and 3.5 BHK has increased. The demand for villas and ro houses for social dissing has increased. The need for housing in tier-2 and tier-3 cities has increased due to reverse migration.
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