Developers restrict launches, sales drop in 2015
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.”