Despite modest new launches, annual housing sales increased by 22 percent and the share of affordable and mid-income housing supply remained more than half across the top cities. A sizeable 58 percent of the new supply that hit the prime markets in the first half of 2019 was in the affordable and mid-price segment and the supply was mainly concentrated in the peripheral areas of the cities. With Hyderabad being on top among the seven cities, residential real estate market witnessed an increase of 22 percent in sales at a pan-India level during the period. Key markets of Mumbai, Bengaluru and Delhi NCR accounted for more than 60 percent of the total sales. Pune, followed by Chennai and Bengaluru, have the maximum share of affordable and mid-price units in new launches. Sales are likely to receive a further fillip with progressive policies of the government. During the first quarter this year, the government further lowered GST rates on affordable homes to 1 percent from the earlier 8 percent, without input tax credit (ITC). Series of reforms and rising buyers’ interest in the segment have propelled the sector to align itself to the market demand. Interestingly, in most cities, homebuyers continue to focus on ready to move in projects and projects nearing completion. As a result of this shift in buying preference, developers too are focused on completing their ongoing projects.

(Moneycontrol)