DELHI: Most developers and consultants have put in an “uncertain” clause in their annual planning for real estate projects, and have decided to fine tune schemes only after election results in June. But even as upcoming elections have slowed down real estate launches and announcement of new projects in the country, developers and brokers are using this time not just to clear inventory but also to tap customers in a slow market.
Qubrex is among many brokerage firms to have started a free election capsule service. While they send aggregated information on elections to their customers, primarily high end and NRIs, to keep them updated on the latest political scenario, they insert property advertisements in between. Whenever transactions happen, these ads will translate into brokerage fees.
“We don’t take a view or an opinion, we just send information – 20% original and 80% aggregated. We try to provide a macro picture to deepen our relations with the customers at a time when business is not going well,” Sanjay Sharma, managing director, Qubrex. It is like captive advertising. “It will definitely help us in growing business by 2 to 5 times in a year.”
In another move ahead of elections, Magicbricks, one of the biggest online property portals, has gone for a revamp to attract more users. It has also launched a separate section for luxury houses.
Many of the developers, Business Standard spoke to, talked (off the record) about going slow in new launches as they want uncertainty to disappear and positive sentiments to return to the market. Real estate industry has been battling a slowdown during the last 18 months or so, with declining sales and high inventory coupled with funding issues.
“The revival of the market looks tough at this moment. But things would change post elections. Many buyers are deferring their decision to buy while developers are holding onto their new plans,” Sharma adds.
Anshuman Magazine, CBRE, a leading consultant, says business is going on as usual but strategies might change after elections depending upon the outcome. “Developers can revive their strategy. The new policy will make a difference. There is an uncertain element in the strategy at this point.”
CBRE as an organization has also felt the heat of slowdown.”Yes, there is an impact. The volume of transactions is coming down. But, we are well diversified, so the impact is mitigated through other segments such as project management,” Magazine adds.
According to a senior executive at a new real estate company, there is a wait and watch policy. “Although small projects keep coming in, there’s hardly any launches in big projects/townships. After the elections, provided there is a clear mandate, there might be sudden spike in the market.”
The outcome of the election, expects the industry, will definitely put the market on a fast-track ‘revival’ mode, the signs of which has already started coming in.