By Accommodation Times News Services
Real Estate a need based industry is again gearing up for new rally of demand with start of festive season from 1st Oct 2016. Accommodation Times Education and Research Foundation have conducted house hold survey which reveals a great current is flowing just below the prevailing market price. Many areas of outskirts of Mumbai, Pune, Ahmedabad, Bangalore and Delhi NCR going to witness a spurt and rise in demand for compact housing which is just in middle of affordable and economic housing segment and premium segments.
Price ranging between Rs.7000/- to Rs12,000/- is most affordable price for middle income group which earns annual income of Rs.5 lakh to Rs12 Lakh. In the catchment areas and rural areas the demand is very very strong. City centres where prices have saturated may start sales after observing a discount up to 30% on current prevailing prices.
Housing finance companies are very optimistic in acheiving their goals of growth of loan portfolios to 20% yoy basis. The major shift of finance companies is now in ticket size of Rs25 lakh to Rs60 lakh. In HDFC annual director’s report too it is stated that demand in these segment exist.
The new festive season, which is always be, year after year, Oct to March, will kick start with Navratri and will remain till Holi. This year, after seventh Pay Commission implementation and bonus on the card, good lucarative market is expected. BSE too showing is great recovery and have been on up rise trend since last four months.
For want of employment, people are migrating into two and three tier cities. Demand is jumping almost 400% since last three years in these cities which includes Indore, Nashik, Palghar, Jaipur, Mysore, Mathura, Jalandhar, Rajkot, Navsari, Gwalior, Ranchi, Bhuvneshwar, Patna and Thane near Mumbai.
Nucleus families are increasing. Latest census data shows that family size have been reducing and have gone to 4.6 level from 5.4 level. Which means joint family culture is reducing and small families are looking for separate homes. This have increased the demand for one BHK and two BHK homes.
Rental are increasing and EMI is the best option to convert rentals into own assets. Hence people are opting to buy rather than lease. In mejor metros, the rentals are on highest historic level for residential segment. The Research have conducted five city survey and found that lease rentals for residential segments have gone beyond common men’s reach.
It is good time ahead.