Real estate price growth and a healthy housing market is pivotal in creating middle-class wealth, which is vital for the economy’s growth.  

Currently all the requirements for a housing boom are well aligned – a growing working population, rapid urbanization, shift to nuclear families, lowest interest rates ever and a pandemic which has driven everyone to the point of having one’s own home. With the recent relaxations and lowest interest, housing is seeing increasing affordability.  
Real estate sector is contributing 6-7 percent to the country’s total Gross Domestic Product (GDP). According to a recent report by India Brand Equity Foundation (IBEF) the real estate market size in India is expected to reach $ 1 trillion by 2030 and contribute 13% to the India’s GDP by 2025. 

Between 2014 and 2020 there was over-supply in the sector, which induced stagnation. Over-supply was due to pumping of cheap money in real estate. 

In 2018, this situation improved because cheap money flow was restricted and the resultant liquidity crunch led to consolidation amongst developers. With this there came a shift in consumer preferences towards reputed developers because of assurance of quality homes and punctuality of deadlines.  

As reported by ANAROCK Property Consultants, in Mumbai Metropolitan Region there has been an 8% decline in unsold inventory, which is the highest in last 7 years.  

MMR and Pune collectively accounted for 53% of total sales across top seven cities in India in the first quarter of 2021.  

Marking a significant decline in unsold inventory, there has been lesser supply and continued sales momentum. Currently, the supply-demand curve will drive possibility of price hike in real estate.