Festive Season Blues: Indian Real Estate to Witness Fewer Launches
The ongoing pandemic and global economic concerns are likely to curtail residential project launches during the festive season, as developers focus on executing ongoing projects and grappling with liquidity challenges.
Real EstateFestive SeasonIndian EconomyProperty MarketHome SalesReal EstateJun 29, 2024
The previous two quarters have been relatively better in terms of sales velocity. However, most developers are looking to utilize funds received from customers to execute the project and service debt as against spending on new launches. According to Niranjan Hiranandani, national president of industry body Assocham and the National Real Estate Development Council (Naredco), the Indian real estate market may witness fewer launches amid many economic risks curbing credit supply in an already liquidity-choked economy.
Despite the challenges, home sales improved over the last two quarters on higher confidence levels among homebuyers and realty developers. The top 35 property markets, including tier I and II cities, recorded 3% on-year and 5% sequential growth in sales, with 27 cities witnessing increased sales in the quarter ended December. New launches, an indicator of confidence among builders to start marketing their projects, rose 38% from a year ago. However, the current scenario may pose challenges to the real estate market.
Information
Assocham is a leading industry body that represents the interests of various sectors, including real estate. The National Real Estate Development Council (Naredco) is a leading industry body that represents the interests of real estate developers.
Assocham is a non-governmental trade association and advocacy group that works to promote the interests of Indian industry. The National Real Estate Development Council (Naredco) is a leading industry body that represents the interests of real estate developers.
Frequently Asked Questions
What is expected to happen to the Indian real estate market during the festive season?
The Indian real estate market is expected to witness fewer launches during the festive season due to the ongoing pandemic and global economic concerns.
Why are developers focusing on executing ongoing projects?
Developers are focusing on executing ongoing projects due to liquidity challenges and the need to utilize funds received from customers to service debt.
How have home sales been performing in recent quarters?
Home sales have been performing well in recent quarters, with a 3% on-year and 5% sequential growth in sales in the top 35 property markets.
What is the significance of new launches in the real estate market?
New launches are an indicator of confidence among builders to start marketing their projects and are a crucial indicator of the market's health.
What are the challenges facing the real estate market currently?
The real estate market is facing challenges due to the ongoing pandemic, global economic concerns, and liquidity challenges, which may impact new launches and sales.
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