Much awaited revival in the property market seems more distant due to the very cold response of the buyers in this festive season as compared to previous two years. People are making inquiries in good number but the same is not leading to a sale.
The number of launches in this festive season has been very low due to a very high level of inventory waiting to be sold. Most of the booking has been happening at a very early stage especially when the projects are officially launched. It is the phase when the cost of the project is at its minimum. This suggests that affordability is playing a big role in property acquisition.
The buyers are still not comfortable with the prevailing market rates and expect a further correction. The real estate experts are forecasting revival after March next year based on job growth data which is at its two-year high and increased leasing activity for office space by the MNCs, expecting the creation of more jobs.
But at the same time, buoyed by the market sentiments which show a strong sign of revival in the time to come, the NRIs are increasingly opting to invest in Indian real estate.
Even the government is actively participating by making repatriation process easier for the NRI to invest in India. According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), property developers are expecting a growth of 35% in real estate inquiries with Bangalore as the hottest destination followed by Ahmadabad and Pune.
Since the demand has fallen for the regular mid segment and high segment residential houses, the developers are promoting luxury and branding projects for the affluent class who would not mind paying a premium price for availing world-class signature apartments.
Indian developers are launching luxury projects in collaboration with international names. One such example is a collaboration between Lodha group and international designer Giorgio Armani to develop the luxury project, World Tower in Mumbai. Armani/Roca collection will be featured in bathroom space.
People are spending more time in the virtual world rather than real world. The Internet is being used to update oneself on the latest news, avail all sort of information and connect with friends, colleagues, and relatives. Real estate market is also not untouched by the internet.
It also offers an opportunity for the developers to connect with the potential buyers to push sales. “About 70-80% of the home search happens online which prompted us to take the next step and offer the option of buying a home online,” says Rajeeb Dash, head marketing services at Tata Housing. Construction companies are starting to tie up with banks to promote online property sale.