By Dr Sanjay Chaturvedi
By Accommodation Times News Services
According to Research report of Accommodation Times Education and Research Foundation, a non profit making registered trust, supply of Ready flats and apartment is short since there are no projects completed and many have delayed since 2010. New changing policies and delay in permission for new projects, redevelopment projects and slow sale of current inventories have made non availability of ready flats. Although under construction properties are piling up and huge stock may come from 2018 on wards in the market but as of now very little choice available.
In metros like Delhi, Mumbai, Bangalore, Ahmedabad and Chennai, there are very few good projects within municipal limits. Since housing financier wants Occupation Certificate before disbursement, no sale happening hence market for under construction residential segment is not moving. The Research further says that although projects which have started in 2010 and yet to be completed, there are hardly any inventory left. It is not even 5% of total projects started. Only under construction market is sluggish.
The premium segment projects still in great demand. South Mumbai projects of Ahuja Builders, Spark Group, Wadhwa Builder and Runwal Builders got very good deals. In Delhi, flats costing more than 5 crore have been sold as hot cake and no choice flats available. In Pune, some of the projects which are completed and having up market price are selling but affordable housing still to see current. In Ahmadabad and Hyderabad sale is almost down but because of huge supply of under construction flats, sale volume is divided into regions. Since 2010, these cities have not delivered and onl under construction flats and apartments moving in the market and changing hands within investor community.
Lot of NRIs have purchased and booked flats in Pune, Hyderabad, Ahmadabad, NCR, Chandigarh, Amritsar, Nashik, Aurangabad, Chennai, and Thane. During 2013 till date total agreement registered aggregating to 8.5 million. These data is compiled with RTI to twenty cities with registrar giving first hand information.
Since supply is huge hence market seems to be slow but demand and cumulative demand since 2010 is increasing. According to Twelveth Five Year plan and now Niti Ayog, the family size have decreased to 4.2 in 2011 while it was 5.7 in 2001. The small family size in urban India is decreasing hence a fresh demand is added to cumulative demand for housing. According to research paper by ACHOCEM,we were 47 million dwelling unit short by 2020. National Housing Bank says we are 28.1 million dwelling short. One thing is certain, there is huge shortage to absorb any supply in the market. We have not taken up gradation demand that is people who are thinking to upgrade their accommodation and under redevelopment projects.