Lower interest rates, stamp duty cut helping residential property demand: JLL India

Residential demand is seeing a pick up ahead of the festive season. What is the pricing outlook for the sector and what are the demand trends Anshuman Magazine, chairman & managing director, CBRE South Asia, and Ramesh Nair, CEO and country head, JLL India give their take on pricing outlook and the demand trend as we head into the end of the year.

JLL India said, “Last 30-45 days surprisingly in the residential market has been quite good. There has been significant revival of sales numbers. I truly believe the worst is behind at least in the residential market.”

When asked reasons for the revival he said, “There are 4-5 key reasons why this is happening - the biggest is the lower prices which developers are offering, today 5-15 percent discounts are offered across the spectrum. Interest rates are at 15 years low and also Maharashtra government did a fantastic thing by reducing stamp duties that has helped the Mumbai and the Pune market.”

Talking about demand CBRE South Asia said, “The third quarter has been better than the second quarter in residential sales and primarily it is end-user demand, it is affordable housing.”

“There is an uptick which is positive and I do expect going forward for next few quarters the sales in the residential market will improve. The momentum in sales will continue going forward for the next few quarters,” he added.