Real estate sector to see 10% growth: Experts

Realty developers and consultants say that sales in the realty sector would be positive this year with a growth of up to 10 per cent in 2016. Ajit Chordia, president, Confederation of Real Estate Agents Association of India (CREDAI), Chennai says, “From now on, sales will be in the upward direction with a growth rate of 7 to 10 per cent in the realty sector. 

People have been buying mid-range apartments in the price range of Rs 30-70 lakh. Developers are redesigning their projects to come up with apartments in the budget segment, where the response has been good,” he said. Another factor that has contributed to the upswing is the fact that there was no major stagnation post the floods. 

Noting that the realty segment would witness positive trend, Ashwinder Raj Singh, chief executive officer (Residential Services), JLL India says that the recommendations of the seventh Pay Commission to hike the salary of state as well as central government employees by almost 23.6 per cent would have a positive impact on the demand side of residential real estate. 

“A growing economy, reducing inflation and a rate cut of 50 basis points by the Reserve Bank of India (RBI) will result in lower home loan rates. These factors can contribute significantly to the growth of the real estate sector going forward,” he added.