Source: ETRealty ( )

India’s residential market has witnessed recovery this fiscal on pent-up demand with increase in housing sales despite impediments like rising interest rates on home loans and appreciation in property prices.

The release of “pent-up demand” was reflected in the housing market, as demand for housing loans picked up, the Survey noted.

“Consequently, housing inventories have declined, prices are firming up, and construction of new dwellings is picking up pace and this has stimulated innumerable backward and forward linkages that the construction sector is known to carry,” the document said.

Housing prices have risen due to an increase in the construction cost amid Russia-Ukraine war that hit global supply chain, the survey said.

“Going forward, the recent government measures, such as the reduction in import duties on steel products, iron ore, and steel intermediaries, will cool off the construction cost and help to check the rise in housing prices,” said the report.

Improvement in affordability in response to measures taken by the government during the pandemic, such as lower interest rates, reduction in circle rates, and cut in stamp duties on transaction of sale/purchase of immovable property and the extension of the Real Estate Regulation Act (RERA) also played a significant role in post-pandemic rebound of the realty sector.

Notwithstanding the current impediments, such as rising interest rates on home loans and an increase in property prices, the realty sector has witnessed resilient growth in the current year, it pointed out.