House sales rise by 12 per cent due to sops in interim budget, GST rate cuts

On account of various tax sops being announced by the Narendra Modi government ahead of Lok Sabha elections 2019, like lowering of GST, cut in repo rates by RBI in February MPC etc. have fuelled the house sales to grow 12 per cent in January to March 2019 in comparison to October to December 2018. The ANAROCK Property Consultants' data shows that housing sales rose by 12 per cent and new residential supply rose 27 per cent q-o-q due to sops in the interim budget, GST rate cuts and lowering of home loan rates post RBI’s recent repo rate cut.

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Speaking on the findings Anuj Puri, Chairman – ANAROCK Property Consultants told Zee Business online, "While we anticipated a negative spill-over impact of the NBFC crisis in the first quarter of 2019, housing sales and new supply assumed an upward trajectory. The sector is currently riding on a new wave of optimism following the triple benefits it received from the Government in the first three months of 2019. These sops have not only increased homebuyers’ sentiments but will also boost the confidence of builders and long-term investors." 

Anuj Puri of ANAROCK Property Consultants went on to add, “Despite a 1 per cent hike in stamp duty and registration charges in Maharashtra, MMR and Pune markets performed significantly well as far as new launches and housing sales are concerned," adding "With project approvals in place, builders in these regions had been waiting for an opportune time to launch their projects, and the prevailing upbeat buyer sentiments was a major kickstart.”

Comparing the Jan-March 2019 quarter with Jan-March 2014 quarter Rakesh Yadav, CMD, Antriksh India Group said, "Defying previous election year trends when sales and new launches remained muted during this period, Q1 2019 saw both housing sales and new supply rise due to multiple Government sops in the first three months of 2019." Rakesh Yadav of Antriksh India Group went on to add that it was this spike in new sales that has boosted the morale of real estate developers to come with new residential supply, especially into the affordable housing segment. so, in coming days we can expect new supply going up and affordable housing projects gaining momentum.