BHUBANESWAR: Real estate developers are a worried lot as they grapple with the problem of unsold housing stocks piling up. They hope the situation would improve after election results if stable governments come to power at the Centre and in the state.
Market insiders said the sluggish market situation has only worsened in recent months as sales have dropped drastically. Most builders are having trouble selling projects under construction, forcing them to curtail new plans.
"We hope the situation will improve after election results if stable governments come to power at the Centre and in Odisha," said Pradipta Kumar Biswasroy, president, Real Estate Developers' Association of Odisha (Reda).
Sources said several reputed builders are having trouble selling their properties that are in advanced stages of completion. While around 18,000 houses are near ready in city, only 2000 to 3000 have been booked.
Around one lakh units are lined up in the state capital region, more than 50 per cent of which remain unsold. "It is a desperate situation because the real estate sector has not picked up after 2010. All eyes are on a possible new government, as that generates positive market sentiments. If other sectors improve, real estate too will improve," said Anup Mohapatra, a developer.
Mohapatra said the outgoing government in the state had promised certain pro-urbanization initiatives such as upgrade of Rourkela and Sambalpur into corporations and several notified area councils into municipalities. If these announcements translate into reality in terms of creation of new urban infrastructure, they would give a push to the real estate sector too.
For now, it is a wait and watch situation. Builders are refraining from announcing new housing projects because of political uncertainty. Builders feel that if a stable government comes, the market in general would improve and it would have a positive impact on realty.
"But if fractured mandate throws unstable governments at the Centre and here, then the projects would face further difficulties," said D S Tripathy, joint secretary, Confederation of Real Estate Developers' Association of India (Credai).
Apart from the pan Indian factors, real estate in Odisha is going through a turbulent phase ever since flow of money was severely curtailed in wake of the mining scam (2010-11) followed by the chit fund scam (2012-13). It has not improved after that.