Caution investors: Excess supply of properties could erode returns

The COVID pandemic sparked the desire among people to upgrade their homes both in terms of size and facilities

Housing sale is displaying strong momentum. Data from Anarock Research shows that an unprecedented 120,000 units were sold across the country’s top seven cities in the third quarter of 2023, a year-on-year increase of 36 per cent. Prices are also rising in double digits: they were up 11.4 per cent on average over this period.

Buoyant sentiment

The Covid-19 pandemic sparked the desire among people to upgrade their homes both in terms of size and facilities. Says Vikas Wadhawan, group chief financial officer, REA India & business head, Proptiger.com: “Many wanted a home with an extra room. People