De­vel­op­ers re­strict launches, sales drop in 2015

HT Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent

Terming the na­tional cap­i­tal re­gion an end- user­driven mar­ket, a Knight Frank re­port, In­dia Real Es­tate, re­vealed that de­vel­op­ers were en­sur­ing that fresh stock did not en­ter the mar­ket. Peo­ple mak­ing a res­i­den­tial prop­erty buy­ing de­ci­sion were ex­er­cis­ing cau­tion and se­lect­ing clean projects.

Ear­lier driven by in­vestors the mar­ket was char­ac­terised by high de­mand for res­i­den­tial prop­er­ties. Things took a turn for the worse in 2014 after in­vestors moved from prop­er­ties to other as­sets for bet­ter re­turns and buy­ers put off in­vest­ment de­ci­sions due to de­layed de­liv­er­ies.

Other fac­tors hit­ting the mar­ket neg­a­tively in­clude open­ing up of new land for de­vel­op­ment, al­lot­ment of group hous­ing li­cences in ar­eas with no in­fra­struc­ture, pro­ject de­lays due to lit­i­ga­tions, liq­uid­ity crunch and stag­nant in­comes.

There were no cor­rec­tions in the first half of 2015 and mar­kets also reg­is­tered a mas­sive yearon-year dip of 50% in the pe­riod with 14,250 units sold. How­ever, if one had to be op­ti­mistic, if com­pared to the bot­tomed sec­ond half of 2014, there was an uptick of 18% in the sales vol­ume in the first half of 2015.

Talk­ing about the sur­vey, Mu­das­sir Zaidi - na­tional director, res­i­den­tial agency, Knight Frank In­dia, said “The realty mar­ket in NCR will con­tinue to re­main muted in the sec­ond half of 2015. How­ever, the sales vol­ume in H1 2015 has shown an in­crease of 18% from the bot­tomed H2 2014. Tak­ing cog­nizance of the mar­ket, de­vel­op­ers will keep new launches in check in the sec­ond half of 2015. We es­ti­mate new launches to stay below 20,000 units in the sec­ond half, with stag­na­tion in the weighted av­er­age prices. The de­lays in projects have made buy­ers cau­tious of de­fault­ing de­vel­op­ers.”

U n t i l t h e y we r e f u l l y con­vinced, Zaidi said buy­ers would con­tinue to as­sess the pro­ject and the developer be­fore pur­chas­ing the prop­erty, and “this is where the developer’s brand and cred­i­bil­ity will come into play.”

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