Primary Market Set To Gain: R&R Report

New Delhi, July 12, 2023: The real estate industry is moving beyond cyclical headwinds, according to “Primary Market Set To Gain”, the latest report by R&R, an independent research wing of Rise Infraventures Limited. Sufficient inventories ready for possession at promising prices and RBI’s recent Clean Note Policy that aims at transparency and trust building seem to have turned the wave in favour of the primary real estate market. These emerging trends spell optimism. The plan: Repositioning primary market for a new period of sustained growth and strong returns.

As part of the Clean Note Policy, the Reserve Bank of India’s recent decision to withdraw Rs 2,000 currency notes from circulation might have raised questions and concerns about the decision’s potential impact on the housing sector. But a recent survey conducted by R&R signifies that this move will have a positive impact on the primary housing sales market

Vishesh Prakash, Head, R&R, explains the trend, “It’s quite evident that the homebuyers will now increasingly prefer to invest in the primary market thanks to multiple favouring factors, including ample supply, comforting price points, and realigned trust and transparency, which has been further strengthened given the recent Clean Note Policy.”

Impacts & Insights:

·       With a lot of inventory getting ready for possession and market sentiments being bullish, the buyers are once again beelining the market.

·       With secondary and cash-driven market losing sheen, new launches and fresh bookings are expected to soar to a new high.

·       Despite RBI’s recent move to discontinue Rs 2000 note from September 30, the homebuyers will continue to prefer primary market, on several accounts, especially due to sufficient supply and heartening price points.

·       The graded Rs. 2000 note withdrawal will also not hit the first sales market involving developers and homebuyers.

·       Most Indian homebuyers are end-users want their purchases to be well-documented and legally above board, which is now possible with enhanced role of RERA and the recent Clean Note Policy.