The real estate industry in India experienced significant setbacks during the COVID-19 epidemic. Lack of funds, labour and demand, had pushed the sector to one of its lowest points. But it is now back on track with signs of gradual recovery.
The market was predicted to recover fully in 2022 and is on the right path. Market analysis and reports show that between April to September 2022, the top seven cities of India recorded sales of 173,155 units. This is almost 2x the sales recorded between April to September 2021. In the previous year, the top seven real estate markets in the country recorded sales of 87,375 units. This signifies the positive growth of the market in 2022.
The real estate market in Pune, especially, has witnessed positive strides and boomed against all odds. Real estate sales in Pune have also doubled on a year-on-year basis. As per market data studied by players in 2021, the sector had grown by almost 8 per cent in the number of housing units sold and saw outstanding growth of 27 per cent in terms of the value of sales that year. About 53,000 housing units were sold between January and July 2021, whereas 49,000 units were sold in January-July 2019. The city saw sales of a whopping 26,580 units during the first half of this current fiscal, which is double the 13,490 units sold during the first half of the financial year 2021-2022.
The pandemic highlighted the need for owning a home and larger space. The expectations, purchasing power, and buying behaviour of homeowners have all witnessed a drastic change. Whilst many locked in their first homes, others shifted accommodations to meet the needs of space to cater to multi functionalities. With changing patterns, homes are now tripling up as offices, study rooms, as well as recreational zones. The norms of physical distancing also directly impacted how we interact with physical spaces, thus influencing homeowners looking at purchasing their dream homes in India.
The spike in demand for housing was also bolstered by the RBI’s imposition of loan moratoriums. Reductions in stamp duty and loan rate benefitted developers much during these testing times.
The centre’s steps to ease investment prospects through REIT flexibility and tax breaks positively impacted market sentiments. The sector is now on the mend, with homebuyers and investors returning to the market.
The first half of FY23 was an out-and-out upbeat period for the residential market in India, with homes worth Rs 1.56 lakh crore sold across the top seven cities. As the festive season catches up, it is predicted that the market will soon overcome the blues of the pandemic.
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