The promise of a strong recovery for the residential market: 2013

Has the thought of owning a home, been dinner table fodder for years? Incessant cafeteria chatter or off the cuff remarks, about a dream home still being a distant dream?

Well! 2013 seems to be the game changer for the desi home owner and India to witness, a strong recovery on the residential real estate.

The optimistic outcomes via the government’s instigated policies on Real Estate Regulation, have strongly been recommended and implemented in giving the realty sector, industrial status -which is truly commendable.

With some price discounting and lower interest and mortgage rates futher down by (25-75bps) all thanks to the RBI, the pace of new launches have picked up, across key markets and with this trend most likely to run successfully and sustain, well into the next few quarters will lead to sharp recovery in volumes coming off a very low base.

JP Morgan believes this trend will allow an easier system of liquidity, with the expected cuts in policy rates ahead, further emphasizing discounts, rate cuts, lower unit sizes that are a sure clincher for affordability levels going high into 2013.

Knight Frank India’s, shared perspective on the performance and future of the residential market share across the 6 major metros offers some valuable insights.

Delhi NCR: A distinct supply increase from new sectors opening in Gurgaon, Noida and Greater Noida continue to lead the market, while a controlled supply check of the quantum of unsold inventory will make and keep the NCR market stable.

Mumbai: Mumbai’s phenomenal property price hikes and downward diving sales volumes, clubbed by a stagnant job scenario have affected sales momentum adversely. This muted account, will increase shares around its peripheral markets.

Bengaluru: A steady supply coupled by stable absorption continues to lead the overall residential market. Being an end user driven market, Bengaluru ensures a healthy growth for 2013.

Pune: Drawing the IT/ITeS with the manufacturing sector and a host of NRIs, Pune continues to gain maximum traction in the residential space, going forward a marginal drop in new launches could stagnate prices, as supply overhang decreases. Pune still boast of luxury budget homes as something special.

Hyderabad & Chennai: IT/ITeS driven residential demands are expected to stabilize in both cities, with absorption to be well maintained with maximum traction seen in West Chennai & West Hyderabad. Both continue to grow exponentially.

The Silver lining for those who missed the boat last year, both developers & consumers, 2013 starts with a fresh beginning with something for everyone and offers a window of opportunity for those anxious to move into their dream home.