Residential sales increased by 83% year over year in June and July 2021, indicating strong demand in the real estate industry. In Mumbai, property registrations have also risen to a 10-year high.
Investors are utilising stock market profits to acquire real estate, according to Anuj Puri, Chairman of ANAROCK Property Consultants.
Puri told CNBC-TV18, "The Indian residential market is sizzling at this moment in time, and prices are likely to go up in certain items. Those goods with a financial closure, those inventories that are either done, because that's where the rush is, or within 6-9 months of completion and those inventories where the financial closure has already occurred, and that's where we're going to witness a price rise.”
“As a result, we are not going to see a price increase across the board. Only if there has been a solid sales momentum, financial closure has occurred, and inventory is substantially nearing completion or completion will we see a 5-7% increase coming up to Diwali,” noted Puri.
Meanwhile, according to Radha Dhir, CEO and Country Head-India at JLL, the affordable housing category has seen fresh launches and improved sales. “In Mumbai, 40% of sales were between Rs 50 lakh and Rs 1 crore, and the majority of launches were in the Rs 1-2 crore range,” she added.
Source: CNBC TV18