New Delhi, (IANS) : It may take time for the residential real estate market to pick up, as the Real Estate Regulatory Authority (RERA) and the Goods and Services Tax (GST) are likely to disrupt the real estate market in the short term, a report said on Thursday.

“However, the market is expected to pick up in the next couple of quarters,” the report titled “Residential Real Estate: An Investible Asset” said.

“Though the residential real estate market remained subdued towards the end of 2016 due to demonetisation, it may take time to pick up as Real Estate Regulatory Authority (RERA) and Goods and Services Tax (GST) are likely to disrupt the real estate market in the short term,” the KPMG-Magicbricks report stated.

The real estate market had generated strong returns on investments to home buyers in the long-term, and was expected to continue to perform well due to the positive steps like reduction in interest rates, interest subsidy to home buyers, increased mortgage penetration and ease of FDI norms in the real estate and construction sector, it said.

The report also noted that the Indian residential property prices had more than doubled over the last decade, with India being ranked among the best performing markets globally.

“India was ranked among the best performing markets globally, thanks to the fact that real estate property prices have more than doubled over the last decade. Interesting to note is the affordability rate to own properties has come down by 50 per cent, as income growth has lagged property price growth. That being said, India’s property market is relatively affordable as compared to its global counterparts,” the report stated.

Commenting on the report, Sudhir Pai, CEO, Magicbricks, said: “The urban population of India is anticipated to grow by nearly 36 per cent to over 580 million by 2030. This along with GDP growth, job creation and mortgage growth is expected to lead to a substantial increase in demand for housing in India.”

Commenting on the real estate industry’s performance and the way forward, Neeraj Bansal, Partner and Head, ASEAN Corridor, and Building, Construction and Real Estate Sector, KPMG in India said: “India holds a strong potential for residential property market growth, which is likely to witness considerable price appreciation over the next decade, with property market fundamental drivers, such as GDP, rapid urbanisation, shrinking household size, higher share of working age population, and mortgage growth expected to grow at a higher pace in India.”