The news is still not rosy for real estate developers as residential realty in the region continues to follow a weak trajectory.
Brokers in the region say that not much of sales are happening as of nowas weak sentiments standing as a stumbling block.
Also, perception is floating that property rates should fall before buyers enter the market.
Vikas Gupta, Punjab region vice-president for real estate developer Ansal-API group, terms the sluggishness in real estate market as a cyclical trend.
“Every year we see residential sales normally gather momentum during festive period and moths from June till August are generally lean from sales perspective.”
Manoj kashyap, regional director, Jones Lang LaSalle, a property management firm, says growth in residential realty is sluggish since last 3-4 months.
While buyers are expecting some reprieve in costs (softening of property prices), builders continue to hold prices.
Explaining the rationale behind prices not coming down as per expectations, Gupta says the input cost for developers has gone up. According to Gupta’s estimates, in the last one year the input prices have moved up by 30-40 per cent.
This probably could be one of the factors for builders not being able to soften the prices.
Real estate channel partners also blame the weakening sentiments for residential market not picking up.
Tarundeep Singh Thakkar, Director Investment –KBK Infra, another real estate advisory form, says transactions in residential sector have slowed down.
“Though it is difficult to put an estimate, but residential market is sluggish now.”
The only silver lining for developers now remains the investors from overseas.
With the weakening rupee, investors overseas are finding it lucrative to invest in properties here.
Tarundeep adds they were observing increase in interest from investors overseas and NRI investors could be one category which could invest in properties back at home.