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Can the sales of luxury properties revive the real estate sector?
Comments READ LATER In this episode of the ‘State of the Economy’ podcast, Dhruv Agarwala, CEO, REA India, discusses the current state of the Indian real estate market and its outlook. The conversation covers various aspects of the market, including the effects of the festive season, consumer trends, price dynamics, and global economic factors. The podcast begins by emphasising the significance of the festive season in India, which traditionally sees increased consumer spending. During this period, people tend to invest in various products, including real estate. Developers often provide enticing offers to motivate consumers to make property purchases. The festive season has historically been a time of high demand for housing and other consumer goods. The discussion also highlights the role of the Reserve Bank of India which has maintained stable interest rates for home loans. This stable interest rate environment encourages prospective buyers to consider investing in real estate. The consistency in interest rates creates a sense of financial security, driving people to make home purchases. Despite multiple rate hikes and the challenges posed by the COVID-19 pandemic, the real estate market has experienced strong demand. This pent-up demand is attributed to the period of uncertainty caused by the pandemic. Consumers who were hesitant to invest in property during the pandemic are now eager to make purchases, contributing to robust market growth. The introduction of the Real Estate Regulatory Act (RERA) has been instrumental in restoring consumer confidence in the real estate market. It has addressed concerns about property transactions and provided consumers with increased protection and transparency. As a result, more people are considering homeownership. The conversation also highlights a trend of people looking to purchase homes in Tier 2 cities. This shift is driven by changing post-pandemic preferences, including the desire for larger homes due to remote work and a focus on hometowns. Cities like Lucknow, Jaipur, and Indore have emerged as prime locations for prospective homebuyers. The podcast touches on the growth in residential real estate sales, with listed companies reporting a 43% year-on-year increase. Additionally, the market has seen a shift towards luxury properties priced above ₹1 crore. This shift is driven by rising incomes, investor activity, and a sense of urgency among buyers who don’t want to miss out on future price increases. Over the years, affordability has improved in the Indian real estate market. Rising wages and stable home prices have made homes more accessible to a wider range of buyers. As a result, there’s an increase in demand across various segments, from affordable housing to luxury properties. The podcast explores the impact of global economic conditions on the Indian real estate market. India is seen as a promising destination for foreign capital, with its strong economic growth and resilience. However, the discussion acknowledges that geopolitical instability and rising oil prices may lead to uncertainties in the global economy. Investors might hold back on cross-border investments, which could affect capital flows and potentially lead to interest rate hikes. The Indian real estate market is currently marked by strong demand, stable interest rates, and changing consumer preferences. The market has shown resilience, improved affordability, and increased foreign investment. However, uncertainties related to global economic conditions, including geopolitical instability and oil prices, could pose challenges in the future. (Host: Abhishek Law, Producer: Anjana PV &Siddharth Mathew Cherian) About the State of the Economy podcast India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups Comments
Publish Date : 2023-10-16 23:30:00
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