Mumbai: Bank credit to the real estate sector has surged to Rs. 28 lakh crore in July, an astonishing growth rate of almost 38%. This growth is driven by factors such as increased demand for real estate, confidence among developers and consultants, and positive indicators in the banking sector. Despite challenges like rising interest rates and property prices, the demand for housing remains strong, with the All India Housing Price Index showing steady growth. Overall, the real estate sector in India is booming, and now may be a good time to invest.
Confidence was evident among real estate developers and consultants that the real estate sector’s sales momentum would remain buoyant. They are optimistic about bumper sales during the upcoming festive season.
Krisumi Corporation’s Managing Director, Mohit Jain, stated that the festive season usually brings about a sense of confidence and an increase in real estate transactions. Jain believes that the residential real estate sector is currently experiencing strong growth, and this trend is anticipated to continue.
Anarock’s Puri said that the demand momentum is projected to remain strong, and the real estate sector is expected to achieve new heights. According to Anarock data, total housing sales rose to 2,28,860 units during January-June of this year across seven major cities from 1,84,000 units in the same period last year.
These cities are – Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Pune, and Kolkata. Despite the COVID pandemic’s increase in home loan interest rates by about 250 basis points in the last one and a half years, as well as an increase in residential property prices, the figures remain high.
