The market will be quiet this Diwali, with investors focusing on unsold stock and new launches, says Vandana Ramnani
Spleted projects has been limited.
Taking sales figures into account from AugustSeptember last year, Gurgaon has witnessed a drop of approximately 70% whereas other cities have seen an average drop of 35% to 40%. The sector needs positive triggers to drive sales. The current festive season is one opportunity where developers have come up with a few new launches to cash in on the positive buyer sentiment, says Samir Jasuja, founder and CEO, PropEquity. Some developers are launching luxury projects to get the best out of customers in the current economic environment, he adds.
Less supply and few launches have affected the absorption figures. New launches during the festive season have averaged 19% to 26% across major cities like Bangalore, Mumbai Metropolitan Region, National Capital Region, Pune, etc. Absorption in the same period has been “approximate- ly 18% to 23% as compared to the new launch absorption recorded during the entire year,” says Jasuja
Om Ahuja, ceo, residential services, Jones Lang LaSalle India agrees, saying since there is not much fresh supply hitting the Gurgaon market, new launches have been selling like hot cakes. Valuations, too, have moved up. Noida has witnessed appreciation on account of the affordability factor and there being enough supply. If delivery of new units starts in Gurgaon, prices may correct. Supply hangover in some areas may result in correction and if that happens the real estate dynamics may undergo a change.