A state of disarray has prevailed in the country’s real estate sector, as the country is still reeling from the shock of the earthquake and tsunami.
The number of new listings on the National List of Real Estate Agents (NRLA) dropped to 17,848 in December from the previous month, as there was no significant change in the number of buyers or sellers.
However, there were indications that the sector could recover.
The number of listed homes rose to 7,764 in December, while the number sold was 8,632.
The NRLA said the numbers of properties sold during the period are not comparable to those in the previous three months as the market had slowed down.
“This may be because the sale of properties was at a much lower level than the number in January-March,” the agency said.
Realtors are not sure if the economy will be able to sustain the boom in sales and prices for many years to come.
Inflation is forecast to be 4.5% for 2017-18, up from 3.6% in 2016-17.
Inflation will remain high in the medium term, as prices rise as the government tries to raise the money it needs to make up for the losses caused by the earthquakes and tsunamis.
Meanwhile, prices in some parts of the country have dropped dramatically as the recovery has started to accelerate.
According to the RBI’s data, prices rose by 12.5 per cent in December to Rs 11,547.
Even though the RBI has not released its monthly growth report for the past year, its monthly inflation rate has gone up by 6.2 per cent, or 0.5 percentage points, from 6.1 per cent.
The RBI is projecting an inflation rate of 6.5-6.8 per cent for 2018-19.