Chennai: Real estate is on a recovery path in major metros with the inventory pile reducing to 4.5 million units in the third quarter, from eight million units in the same period last year.
According to a survey by property portal 99acres, the reduction of inventory signals the revival in the residential real estate market.
The report said new launches were put on a back burner as cities swarmed with unsold inventory. Grade A developers took the lead in launching new projects as acquiring a RERA number became a challenge for small-scale developers, it said.
Barring Chennai and Pune, where average weighted property prices remained unchanged this quarter, all other metro cities witnessed the capital rates increasing marginally versus the previous quarter, the report said.
The report further stated that affordable housing clusters, transit corridors and economic hubs continued to gain the maximum buyer traction.
“The Indian real estate sector finally bid adieu to the prolonged impasse which started with demonetisation and worsened with Rera and GST ambiguities. Recovering property enquires, sales volume and prices were testimony to a progressive market sentiment,” said, chief business officer at 99acres, Maneesh Upadhyaya said.
“While unsold inventory trimmed in both new projects and resale markets, project launches in affordable housing segment gained momentum. Multiple efforts towards strengthening infrastructure, a pro-buyer regulatory environment in the country and unchanged interest rates are expected to push the housing sector on a growth trajectory with improvement in fresh supply and sales volume in the ensuing quarters,” he added.