The Confederation of Real Estate Developers Association of India (Credai) of Maharashtra expressed concerns over the plunging sales in the realty sector due to market recession. The property sector has faced over 22 pc dip in sales due to slow down. The problems like inflation demand supply gap, higher interest rates and liquidity have badly affected the sector.
The realty sector is contributing 6.5 pc to national GDP. Most of the realtors’ time wasted to get regulatory approvals. Due to the recent scams in the sector, the government is very cautious and hence it has resulted into delaying the projects. The sector needs more transparency. Over 40 pc amount spend on approvals, 37 pc on taxes and rest on development cost.
In India, projects will also delay due to policy paralysis. The risk level in the sector has enlarged. But there is no policy for the high-rise structures. The development cost has also gone up by 22 pc.
In Pune, new budget-to-mid income housing projects are coming up in many places like Dhanori, Nighdi, Kondhwa Khurd, Dighi, Manjri, Mundhwa, Undri, Warje, Ambegaon and parts of Hadapsar. Many of these locations have premium and semi-premium options, which are largely defined by larger floor spaces and better amenities.
The main destinations are no longer affordable from a mid-income buyer’s perspective as prices have being surging drastically with the lowering in supply.
However developers have refused to cut prices. The input prices have been going upwards. The demand is adversely impacted by the slowdown.
However, the Pune real estate has performed better than most of the other metros, with supply overhang in the city being among the lowest among the seven major cities