Residential real estate upcycle is expected to continue for 12-18 months, says Dhruv Agarwala, REA India group CEO
real estate demand is on an upcycle, and will continue for at least the next 12 to 18 months if not longer, with supportive interest rate regime, Dhruv Agarwala, Group CEO, Housing.com said.
REA India, which owns Housing.com and other platforms, reported 44 million Australian dollars revenue for the first 6 months, 21% growth over the same period last year.
“The fact that interest rates have remained stable also helping and I think the expectation is that it’s only gonna come down or unless something really out of the blue happens globally, I think towards the end of the year one can actually expect a rate cut,” said Agarwala.
The upcoming election season might see relatively less number of launches but it is expected to catch up in the couple of months after.
“Once interest rates start getting cut then, cost of borrowing for developers go down and cost of borrowing for consumers also go down. So overall, it will help the sector for sure,” Agarwala said.
The executive however said that high real estate prices is a cause of worry.
“This is what we saw even back in 2011-12 when prices went through the roof, launches were happening at very high prices. The risk is that when investors start coming into the market and end users start getting crowded out, which leads to a sort of a bubble which ultimately would burst if investors are trying to exit and at the required price points, there are no end users,” he said.
However as per industry reports, affordability is at an all-time high as in it's one of the most
