Volume growth is the key growth driver this decade, versus Asset Price Appreciation in the previous decade.
The government's efforts towards Housing for All by 2022 implies multifold increase in supply, which is yet not visible. Cement demand is a good leading indicator for the property sector, according to the panelists.
Demand for completed projects is high due to low execution risk. In the past few quarters, there has been an increase in interest in lower ticket size apartments.
Affordable housing has significant underlying demand (and hence a big opportunity for developers). Plus, multiple incentives announced by the government have resulted in many prominent developers entering this space.
Most of the states are yet to notify RERA rules despite the set deadline of July 30, 2017. Grade A
developers are likely to benefit from RERA due to their stable balance sheet (ability to comply with 70% escrow requirement), good execution capability and better corporate capability to comply with new rules.
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