The real estate market in urban centres has experienced a significant pick-up in momentum and when compared to pre-pandemic times, the inventory left with builders has seen a sharp drop. However, there are areas of concern as well like the lack of affordable housing.
According to Anuj Puri, Chairman of ANAROCK Property Consultants, the Bengaluru market has seen some setbacks due to a technology slowdown. However, Puri remains optimistic about the future of the market, stating that as commercial leasing improves, Bengaluru will see a comeback.
“Fundamentally, demand is very strong. Bengaluru has got a little bit of a setback and that has largely been because of the technology slowdown. We are seeing a bit of a pause in the Bengaluru residential market but my thought is you will see this market come back as the commercial leasing starts to prop up again with more US corporates starting to outsource particularly in Bengaluru,” Puri said.
Puri's sentiment is echoed by Navin Raheja, CMD of Raheja Developers, who reports that there is strong demand in the NCR market as well.
“In NCR, there is a great upswing, total change in sentiment index of home buyers even for new launches, even the ready-to-move inventory is also getting liquidated. We have been suffering because of lack of demand but there is a sudden and dramatic change in demand now,” Raheja mentioned.
While certain regions may be struggling, others are seeing a surge in demand and price hikes. Puri predicts that these price hikes will continue in this fiscal.
Despite the mixed performance of the real estate market, there is no need for worry among those in the ultra-luxury market. According to Gulam Zia, Senior Executive Director of Knight Frank, there is no cause for concern.
“I don’t see any worry on the upper end of the market for sure,” he said.
This may come as a relief to those looking to invest in high-end properties, knowing that this segment of the market is expected to remain stable.
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