NO FIRE­WORKS

The mar­ket will be quiet this Di­wali, with in­vestors fo­cus­ing on un­sold stock and new launches, says Van­dana Ram­nani

HT Estates - - Front Page -

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.

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