Real estate to see little sparkle this festival season as sales remain low
While real estate players geared up for the festival period with discounts, incentives and freebies, the success of which has varied across locations, the sales have not been very encouraging
Oct 17, 2014
Source : The Hindu BusinessLine
Real Estate

 

New Delhi: The festive season has failed to brighten the real estate sector, as developers see low sales conversion despite high enquiries.

While real estate players geared up for the festival period with discounts, incentives and freebies, the success of which has varied across locations, the sales have not been very encouraging. New projects too, are being announced at lower rates.

Anuj Puri, Chairman and Country Head of JLL India, said, “The RBI has held on to current interest rates in favour of safeguarding against further inflationary trends. It will take several months for the market to get into forward momentum again, and while it is showing signs of revival, the effect will take 6 months or more to trickle down, developers said. Vineet Relia, Chief Operating Officer of SARE Homes, said, “The last boom we saw during the Navratri period was in 2011. We have received a lot of enquiries and sentiment too has improved, but sales conversions are low. The sales that have picked up pertain to houses where the ticket size is small.”

Increasing inventory

There has been 30 per cent increase in the launch of new residential projects every quarter in 2014, and this has resulted in the inventory further going up by 6.7 per cent in the same period, Puri added. The dull in the market is a combination of unsold inventory and the overall economic situation, said Prashant Solomon, Managing Director of Chintels India, and Member-Governing Council, Credai NCR. Ahead of general elections, developers had launched many projects but residential property buyers have taken a cautious approach. “Consumers are really aware now and take time to make a purchase decision unlike the past when they used to queue up at the launch itself,” Relia added. While August and September have been particularly tough, Abhay Kumar, CMD of Griha Pravesh Buildteck, said that October seemed to be comparatively better with the company selling around 40-50 units in the first fifteen days.

However, Kumar added that the sales conversion from enquiries has been 7-8 per cent. Knight Frank India, in a recent report said that markets such as NCR and Mumbai have not even seen regular investments coming their way and seem to be waiting for the Government to execute reforms.

“Keeping in view the current situation we expect at least 6-8 months before actual transactions begin picking up. Though stakeholders are hopeful that this will change before the said time period, but if the current signs in the market are anything to go by, it’s still a long way ahead,” the consultancy added.

Latest Realty News

Real estate sales muted in September quarter
Oct 17, 2014
Bangalore: Property sales in the three months ended 30 September were muted across India, with only Bangalore displaying some resilience
Why Huge Housing Scheme Named for Sardar Patel Will Annoy Congress
Oct 17, 2014
New Delhi: A large component of the new housing-for-all scheme will be named after iconic Gujarat leader and freedom fighter Sardar Vallabhbhai Patel
Bangalore - BDA Sets New Sale Record
Oct 17, 2014
Bangalore : A BDA residential site sets a new sale record by attaining an incredible amount when the Bangalore Development Authority (BDA) set up theJayanagar plot for sale
UP govt to tighten noose of land mafias and fraudsters
Oct 16, 2014
To identify and end land frauds in GB Nagar, district administration has kicked off drive to identify such land
Guidance value to shoot up by 20-30% from November
Oct 16, 2014
Planning to buy a plot or flat? Hurry up, for the Karnataka government is set to increase guidance values by 20-30% from November
BDA to Hire Pvt Firm to Process Building Plans
Oct 16, 2014
Getting a building plan approved in the Capital is set to get simplified with the Bhubaneswar Development Authority (BDA) deciding to hire a private firm to deal with the applications
Realty body APREA seeks greater tax clarity for REITs, InvITs
Oct 16, 2014
Real estate industry body APREA has sought greater clarity on taxation issues for the newly created investment vehicles REITs and InvITs
DDA Housing Scheme Closes; 7.5 Lakh Applications Received
Oct 16, 2014
The DDA has received a total of 7.5 lakh applications for it flagship 'Housing Scheme 2014',
Committee searches for encroached plots
Oct 16, 2014
Six squads under the newly formed Central Enforcement Monitoring Committee have identified 55 encroached government plots in and around the city within two weeks
Office space: Polar Star Realty Trust files for a $100 million IPO
Oct 16, 2014
Polar Star Realty Trust, a REIT formed to own office and industrial property in Norway and Sweden, filed with the SEC to raise up to $100 million in an initial public offering

Latest Realty News Of State

Realty Talk's