Indian Real estate sector has witnessed a split up growth in business over last four quarters. There have been instances of slowdown in few regional pockets, parallel to robust construction activity in other provinces. This has been in accordance to fluctuation in retail market and commercial ventures in the country.
Looking at the zonal distribution of residential realty business, northern and western regions have received a constant demand of commercial and residential projects. However, the return on investments and moderation of value appreciation has remained varied. Metro cities in north, especially the Delhi NCR region has witnessed high demand of luxury apartments. Absorption rate for these high-end homes has also been promising to a certain extent. Likewise, in western region, high net worth individuals have transacted for posh residential properties and the office space construction has also been robust. The out growths of metros like Noida and Gurgaon in north and Navi Mumbai in west have done tremendously good in terms of enlarged scope for realty business.
Interestingly, south India has fared pretty well in terms of expanding realty sector. This owes its reasons to the enhanced investments in infrastructure and improved transport system in this region. A large number of corporates have invested in Bangalore, Hyderabad and Chennai. It has been IT in Bangalore, telecommunication in Hyderabad and auto sector for Chennai that has immensely contributed to the growth.
Government investments in infrastructure combined with restructured policies in banking and financial sector have contributed to constant growth of real estate in India. Looking at the pace of trade expansion, increased FDIs and favorable administrative policies, realty sector is expected to grow further in the coming fiscal period.