Festive season fails to bring cheers for real estate
The pro-business policies favouring realty- will need more time to bring their benefits to bear on the market, JLL Chairman and Country Head Anuj Puri said
Oct 24, 2014
Source : The Economic Times
Real Estate


MUMBAI: Despite recovery in market conditions and sentiment, this festive season has failed to bring in cheers to the real estate industry as home buyers continue to remain cautious, according to industry experts.

Festive season is generally considered as the most important time for the realty sector as it records the highest number of sales, which is nearly 20-25 per cent more than non-festive period.

"The real estate industry has always witnessed a rise in sales during the festive season especially on the back of freebies and incentives offered by the developers. However, despite recovery, there is no improvement in sales during the festive season," IndiaProperty.com Chief Executive Ganesh Vasudevan told PTI here today.

He said, "the demand from property buyers has increased compared to the last few quarters. This is witnessed from the number of enquiries we are receiving. But this is not translating into actual transactions as buyers have adopted a wait and watch approach."

According to Jones Lang LaSalle India Chairman and Country Head Anuj Puri, though there is a recovery in sentiment, the events that have catalysed it - namely the new government at the Centre and "its pro-business policies favouring realty"- will need more time to bring their benefits to bear on the market.

"While demand exists, it is still held in abeyance by various economic factors, including the natural lag between the announcement and implementation of the government policy catalysts," he said.

Likewise, the Reserve Bank has held on to current interest rates in favour of safeguarding against further inflationary trends.

"It will take several more months for the market to get into convincing forward momentum again.. the festive season did not bring the kind of momentum that was hoped for," Puri added.

"There is also an expectation that home loan rates may come down in the next 2-3 quarters as the government is taking initiatives to tame inflation. If the interest rates come down, we will see a surge in sales from the second or third quarter of 2015," Vasudevan noted.

Developers, on the other hand, have been addressing the situation by offering selective discounts and incentives, the success of which has varied across cities and locations. Those with greater holding power continue to wait for the market to pick up so that sales velocity will accelerate, Puri said.

"During the festive season, developers generally launch new projects as well as offer various incentives to attract buyers. However, over the last few quarters, there has been a slowdown in new launches as the inventory levels itself are very high," Samruddhi Realty Chief Executive Madhusudan K said.

He further said developers are currently concentrating on clearing the inventory and are offering discounts and other incentives to attract buyers.

Latest Realty News

YEIDA to luanch affordable, green homes
Oct 24, 2014
GREATER NOIDA : This Diwali , the Yamuna Expressway Industrial Development Authority ( Yeida ) is set to Launch Affordable Residential Flats for nearly 3,000 middle and Low INCOME green groups
BDA Cell to Protect Government Land
Oct 24, 2014
BHUBANESWAR : The Bhubaneswar Development Authority (BDA) formed a Land Protection Cell (LPC) here to safeguard land cleared of encroachments
DLF seeks interim relief from Sebi ban
Oct 24, 2014
MUMBAI: Barred by Sebi from accessing capital markets, realty giant DLF on Thursday sought interim relief from Securities Appellate Tribunal (SAT) to allow it to redeem funds locked in mutual funds and other instruments
Rs 1,200 per sq ft: Mumbai realty bribery rate is half of actual building costs
Oct 24, 2014
Mumbai: Elimination of corruption alone can bring down home prices significantly in India's urbs prima.
For realty tycoon Ali Lokhandwala, luxury must be practical and child-friendly
Oct 24, 2014
Mumbai: It's all about luxury, with each developer trying to do outdo his competitors by offering one facility after another
After minimal activity, realty in Maximum City picks up
Oct 24, 2014
Mumbai: Property sales registrations in Mumbai have seen a marginal year-on-year increase of 8.3% in July-September 2014
Water crunch may hit DDA's new houses
Oct 24, 2014
NEW DELHI: People who have registered for DDA's latest housing scheme will most likely face a severe potable water crisis
Real estate helping Asia Pacific HNWIs to lead world
Oct 24, 2014
As the numbers of Asia Pacific HNWIs look to overtake North America in the next few months, their investment in real estate has been among the main factors for the growth, says data expert, Capgemini
Housing societies slam doors on singles ‘ready to mingle
Oct 24, 2014
Mumbai: The latest in a set of unwritten “rules” followed by housing societies while letting out flats to people in the city is “no singles allowed
No takers for ‘easy’ schemes by desperate developers
Oct 24, 2014
Mumbai: In a bid to beat their blues in the slackened realty market, developers in Mumbai are trying to make the most of the festive season by dangling lucrative easy payment schemes

Latest Realty News Of State

Realty Talk's