Home sales may revive during festive season: Anarock

BENGALURU: Housing sales are expected to rise during the ongoing festival season due to structural reforms like RERA and GST that have helped firm up buyer sentiment.

According to Anarock Property Consultants developers too have progressively adjusted their business approach in the new era of transparency brought on by GST and RERA, and are geared up to cater to the pent-up demand for homes this year.

"Most aspiring home buyers deferred their purchase decisions, preferring to wait until RERA kicked in fully. Though most developers offered compelling discounts and schemes, buyers stuck to their cautious approach during the last festive season," said Anuj Puri chairman Anarock Property Consultants.

Real estate market, especially residential segment, has been witnessing a slowdown for last 3-4 years, leading to sluggish housing sales and delay in the completion of projects.

Puri added that home buyers last year’s festive season stayed away from the market - primarily due to execution delays, an uncertain economic scenario and unattractively high prices.

"Demonetization also played a key part in the depressed sentiment – not only in the resale market as was at first expected, but in primary sales as well," he added.

Festival season is considered auspicious for real estate purchase and therefore developers gear up for increasing their sales.

According to the consultancy firm buoyed by a stable economy and progressive policies, the realty sector attracted $1990 million in institutional investments during the first half of 2017. The residential sector accounted for 54% ($1075 million) of these investments.