As the key reforms of Real Estate Regulation & Development Act (RERA) and GST settle in and their initial disruptive effect blows over, the revival of residential real estate facing severe slowdown for the last over 2-3 years, is gathering momentum. Housing supply has seen qoq rise in sales in the first quarter of the year, in 7 key cities across India, with 25 percent increase in absorption. in April. The worst hit NCR has seen sales substantially picking up this year, registering 150 percent hike in the month of April over previous month, followed by Bengaluru (41 percent) and Mumbai Metropolitan Region (29 percent). RERA has contributed significantly to supply as developers focused on completing ongoing projects.
Affordable housing is playing a major role in the revival of real estate. Meeting the market demand, developers have been increasingly taking to building low cost homes.According to real estate advisory, Anarock Consultants, the April, 2018 statistics show that 43 percent of total supply in the month accounted for affordable housing. The industry has seen declining trend in the sizes of homes ( 10-30 percent decline in NCR), in order to increase the affordability of home buyers As such the weighted average prices of properties, particularly new properties, have gone down.