The year buy­ers took cen­trestage

In 2015, prop­erty prices sta­bilised as builders fo­cused on get­ting the size and the cost of the units right to clear in­ven­tory

HT Estates - - FRONT PAGE - NUM­BER OF PROJECTS LAUNCHED NUM­BER OF UNITS LAUNCHED NUM­BER OF UNITS SOLD UN­SOLD IN­VEN­TORY IN VAR­I­OUS STAGES OF CON­STRUC­TION Vn­dana Ram­nani

Adras­tic fall in the num­ber of new launches and a con­sis­tent ef­fort on the part of de­vel­op­ers to con­sol­i­date and com­plete pend­ing projects were the high­lights of 2015. The af­ford­able hous­ing seg­ment gained im­mense favour

UT­TAR PRADESH

both from the gov­ern­ment and the home­buy­ers. The builders too re­ori­ented their fo­cus from mid to small ticket sizes to cater to home­buy­ers de­mand and en­hance their cash flows.

Un­like pre­vi­ous years, home­buy­ers were not sat­is­fied with the of­fers in prop­erty brochures or the free­bies handed to them dur­ing the fes­tive sea­son. “The key words in cus­tomer sat­is­fac­tion for home pur­chases in 2015 be­came pro­ject de­liv­ery, pace of con­struc­tion progress, and prod­uct qual­ity,” says An­shu­man Mag­a­zine, chair­man and MD CBRE South Asia Pvt Ltd.

“Apart from be­com­ing more re­al­is­tic with prop­erty pricing, de­vel­op­ers and land­lords be­came more ac­com­moda­tive

HARYANA

of home­buy­ers’ re­quire-re­quir ments.ments. Cur­rently, de­velop-de­velo ersers are more flex­i­ble withwi prop­erty price points anda are ready to of­fer bet­ter pay-pa ment­ment plans and struc­tures to get the buyer to re­turn to thet mar­ket. The fo­cus is now on clear­ing ready in­ven­to­ry­in­vento rather than launch­ing ne­new projects,” Mag­a­zine says.

The apex bank pared keyk in­ter­est rates four times ththis year. The low­er­ing of in­ter­estin­tere rates­rates by­bytheRe­servetheRe­serve BankofBankof In­di­aInd (RBI) and at­trac­tive deal terms such as sub­ven­tion schemes etc of­fered by de­vel­op­ers also made some fence sit­ters come for­ward to in­vest in houses.

But de­spite re­duced home loan rates, re­lax­ation in loan-to-value (LTV) ra­tio in the hous­ing sec­tor, and sig­nif­i­cant dis­counts and at­trac­tive of­fers from de­vel­op­ers on com­pleted projects—in­vestors are yet to re­turn to the mar­ket in com­par­i­son to de­mand in pre­vi­ous years. Ma­jor rea­sons for this slug­gish de­mand are home­buy­ers’ ex­pec­ta­tions on pro­ject de­liv­ery, the pace of con­struc­tion progress, and ul­ti­mately, prod­uct qual­ity, says Mag­a­zine.

“While 2015 did not bring the hoped for growth in res­i­den­tial real es­tate, the sil­ver lin­ing is that the bad days seem to have bot­tomed out and sales have picked up in a few cities. De­vel­op­ers’ ini­tia­tives like of­fer­ing at­trac­tive schemes and deal terms, cou­pled with low­er­ing of in­ter­est rates by the RBI, have ac­ti­vated fence sit­ters,” says Anuj Puri, chair­man and coun­try head at JLL In­dia.

“The year did not see any sig­nif­i­cant ac­tiv­ity or short-term re­vival but de­ci­sion mak­ing on the part of buy­ers was faster. En­duser de­mand ex­isted for value-for­money projects that were near­ing com­ple­tion in se­lect pock­ets of Ghazi­abad, Farid­abad and cer­tain pock­ets along the NH8. The con­sumer was seen buy­ing two types of hous­ing prod­ucts – those that were close to de­liv­ery (where work on in­te­ri­ors had started), en­joyed a good lo­ca­tion and those that were 50% to 60% ready,” says Anckur Sri­vast­tava of GenReal Ad­vis­ers.

There was no ap­pre­ci­a­tion in hous­ing prices given the amount of sup­ply that ex­ists in the mar­ket (un­sold in­ven­tory stands at 1,80,000 units) but go­ing for­ward, end-user ac­tiv­ity is ex­pected to im­prove sen­ti­ments. Buy­ing ac­tiv­ity will con­tinue in es­tab­lished lo­ca­tions but in­ven­tory in emerg­ing lo­ca­tions may take a few more years to get trac­tion, Sri­vast­tava says, adding builders are fo­cus­ing on work­ing to­wards cre­at­ing brand am­bas­sadors out of cus­tomers.

SOURCE: KNIGHT FRANK IN­DIA IS­TOCK

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