It’s all about cash, not the re­frig­er­a­tor

You should not ex­pect too many gold coins and white goods as free­bies be­cause de­vel­op­ers might pre­fer to give dis­counts

HT Estates - - Front Page - Van­dana Ram­nani

There were not that many free­bies up for grabs in 2011 due to the tight­en­ing of liq­uid­ity and rise in con­struc­tion costs. There were some pay­ment plan of­fer­ings and a few ‘gifts’ here and there, but that was just about it. This year is no dif­fer­ent – but there is a flicker of hope in the realty mar­ket with the reemer­gence of Noida Ex­ten­sion.

Mod­er­ate ac­tiv­ity, not ro­bust sale, is ex­pected. De­vel­op­ers may also be un­der pres­sure to sell their ex­ist­ing stock to gen­er­ate rev­enues. This means there might not be too many new launches this sea­son, ex­cept in the Noida Ex­ten­sion area and few in the high-end seg­ment in other mi­cro mar­kets.

Free­bies geared to­wards fi­nan­cial dis­counts

Don’t ex­pect too many free­bies as com­pared to ear­lier years as de­vel­op­ers are un­der tremen­dous pres­sure to main­tain their mar­gins in the cur­rent sce­nario of ris­ing in­put costs and re­strained avail­abil­ity of funds. What you could get, how­ever, are fi­nan­cial dis­counts like com­pli­men­tary reg­is­tra­tions and EMI-free pe­ri­ods, says An­shul Jain, CEO, DTZ In­dia.

Noida Ex­ten­sion to be the game changer

The re-en­try of Noida Ex­ten­sion in the realty mar­ket will go a long way in up­lift­ing the mood in the oth­er­wise gloomy res­i­den­tial mar­ket due to the cost ad­van­tage the location has over Gurgaon in NCR.

The USP of Noida Ex­ten­sion has been af­ford­able hous­ing. There was in­creased ac­tiv­ity in this area be­tween 2009 and 2010 due to the launch of res­i­den­tial projects with av­er­age per square feet rate of R2000 to R2200.

At this cost, many peo­ple thought they could re­alise their dreams of own­ing homes and in­vestors saw it as a lu­cra­tive op­por­tu­nity. How­ever, the mid­dle-in­come home­buy­ers and in­vestors were hit the hardest when the con­struc­tion work stopped in the en­tire Noida Ex­ten­sion area af­ter the land ac­qui­si­tion con­tro­versy and the Al­la­habad High Court’s or­der in Oc­to­ber 2011 to get the Greater Noida Mas­ter Plan 2021 ap­proved be­fore com­menc­ing any fur­ther con­struc­tion.

In the ab­sence of ‘af­ford­able’ res­i­den­tial projects, all ac­tiv­ity in this seg­ment of home­buy­ers and in­vestors had re­mained con­sid­er­ably sub­dued.

“But now, with Noida Ex­ten­sion back on the growth track, the mid­dle in­come buy­ers and in­vestors are back in ac­tion and scout­ing for their dream homes here,” adds Jain.

Agrees Shveta Jain, ex­ec­u­tive direc­tor, res­i­den­tial, Cush­man & Wake­field In­dia, “the prod­uct of­fer­ings made in the re­gion are ex­pected to pro­vide lu­cra­tive in­vest­ment op­por­tu­ni­ties for both en­dusers and in­vestors dur­ing this fes­tive sea­son.”

With the nec­es­sary ap­provals granted and the is­sue of land ac­qui­si­tion ad­dressed, Noida Ex­ten­sion is ex­pected to drive sales dur­ing this fes­tive sea­son. The re­gion has wit­nessed height­ened ac­tiv­ity due to the launch of var­i­ous res­i­den­tial projects, mostly in the af­ford­able seg­ment.

Prom­i­nent de­vel­op­ers in the re­gion in­clude Am­ra­pali, Stel­lar, Gaur In­fra, and Habitech to name a few. “Al­though prices are ex­pected to shoot up in Noida Ex­ten­sion in the com­ing year, they are likely to re­main cheaper than Noida and Greater Noida,” adds Jain.

Price cor­rec­tion dur­ing this time of the year

Will there be a price cor­rec­tion? Ex­perts point out that the last quar­ter of the calendar year, which in­cludes the fes­tive sea­son, is typ­i­cally the most ac­tive one.

Also, most non-res­i­dent In­di­ans visit In­dia at about this time, so it is likely that de­vel­op­ers will not bring their prices down till the last quar­ter.

The in­tro­duc­tion of fresh stock in Noida Ex­ten­sion, es­pe­cially if it is launched in the price band of R3500 to R4500, can trig­ger a price cor­rec­tion in other lo­ca­tions of Delhi NCR.

Due to the huge supply that will be in­tro­duced, a cor­rec­tion in the sec­ondary mar­ket could be likely too. Ghazi­abad, how­ever, seems to be bet­ter poised as it is pre­dom­i­natly an end-user mar­ket, least spec­u­la­tive but with huge den­sity.

Gurgaon may not wit­ness too many new launches this fes­tive sea­son as it is a highly spec­u­la­tive mar­ket like Mum­bai. It is more of an in­vestor driven mar­ket rather than an en­duser one.

IMAGESBAZAAR

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