The real estate market is getting into a stabilization mode. The H1 FY 2016 had only 1% fall in sale, which was the lowest rate of fall since H2 FY ‘14. The prices have remained range bound, with a nominal price increase of around 1% during the same period. The possible risks from these levels were limited in the financial Year 2017.
The houses in the affordable segment within price range of Rs 50 lakh segment continued to be in demand in line with the Governments ‘Housing for All 2022’ plan. This segment saw the major share of launches with over 50 per cent in launches and 52 per cent in sales in FY 2016. Affordable housing demand could surge in FY17 with several incentives announced in Union Budget FY17 for both developers and first-time buyers.