July08, 2017 (C) Ravinder Singh firstname.lastname@example.org
Housing Sector contributes 2nd highest JOBS – 1st Highest Skilled JOBS but there is big SLUMP – Rs.2 Cr+ Home Launches declined 80%, INDIAN RICH SUDDENLY POOR – 5350 in H116 to 687 in H117.
GREEN SHOOTS OF RECOVERY The past 3-4 years have been an extremely stressful period for the Indian real estate with markets being subdued in terms oflaunches and sales across major metros. However, this year is expected to be the year of inflection with new regulations coming into place. These regulations and reforms would herald the industry into it next wave of growth. Right from buying of land, funding of projects to delivery of the final product to the buyer, the entire process is going to witness a drastic change.
According to estimates, the shortage in urban housing is around 1.9 crore (19 million) units and 95% of this shortage is in the affordable housing segment. In a bid to bridge this huge gap between demand and supply of housing, the Government of India launched the “Housing for All by 2022” initiative in June 2015.
Ø PMAY – Housing loans of up to Rs.9 lakh & Rs.12 lakh will now get interest subvention of 4% & 3%.
Ø Residential launches in the top eight cities of the country declined by 41% to 62,738 units in H1 2017 compared to 1,07,120 units in H1 2016. The decline was 9% compared to demonetisation period of H2 2016 when 68,702 units were launched. Ahmedabad and NCR wore the worst hit with launches falling by 79% and 73% respectively.
Ø Sales during H1 2017 declined by 11% to 1,20,756 units in H1 2017 compared to 1,35,016 units in H1 2016. THERE IS 11% DECLINE IN NUMBERS BUT OVER 50% DECLINE IN VALUE.