The festive season has failed to bring confidence to the real estate market

Q: As per the report by builders and brokers real estate market cold in the festive season.

Aneek Das,

8th October 2014

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Replies (8)

Hi everybody,
It is seen that most of the real estate players geared up for the festival period with discounts, incentives and freebies, the success of which has varied across locations, the sales have not been very encouraging. New projects too, are being announced at lower rates but all invain.

Ravindra Singh,

16th October 2014

Comment

You are right Ravinder,
Even the RBI has held on to current interest rates in favour of protecting from harm against further inflationary trends. It will take several months for the market to get into forward momentum again, and while it is showing signs of recovery, the effect will take 6 or more to drip down.

Sujan Mitra,

16th October 2014

Now the ahead of general elections, developers had launched so many projects but residential property buyers have taken a careful approach. Consumers are really aware now and take time to make a purchase decision unlike the past when they used to queue up at the launch itself.

Ravindra Singh,

16th October 2014

This all happens because of the Union Budget 2014-15 which has laid enough significance on the realty sector and this has charged a positive sentiment for the future.

Sujan Mitra,

15th October 2014

Comment

And one thing we all have to know that Festival season have not really kept up to the expectations in terms of housing sales because homebuyers are on wait and watch mode hoping that interest rates will fall and economy will improve. We feel that in another 6-8 months, the actual transactions will start picking up.

Veena K,

15th October 2014

Yes, you can say that the inquiries have increased but the actual buying is not taking place as per the expectation.

Sujan Mitra,

15th October 2014

Hi,
during the current festival season housing sales have remained lower than expected mainly due to high interest rates and the demand is likely to pick up only in the next 6-8 months, according to a report by Knight Frank and FICCI.

Sujan Mitra,

15th October 2014

Comment

Yes, it is absolutely right and this report is based on Property consultant Knight Frank and industry body FICCI . They released the Real Estate Sentiment Index for Q3 2014 (July–September) based on a survey of various supply-side stakeholders including developers, private equity, banking and non-banking financial firms.

Veena K,

15th October 2014

Do you know that the current sentiment index based on all asset classes and all locations, rise by 12 points to 63 points, while the future sentiments have also improved by 2 points to 71 points.

Do you have any previous updates of sentiment index?

Sujan Mitra,

15th October 2014

@Sujan,
Knight Frank said in a statement that the current sentiment score merely break the 50 mark in Q2 2014 (April–June), results for this quarter (July–September) has risen to 63 which is markable to the stakeholders' positive realization regarding the economy.

Veena K,

15th October 2014

As per the some brokers statement many buyers are making inquiries but sales are still not happening at the pace that is usually associated with the festive period.

Veena K,

8th October 2014

Comment

Yeh......
As per RK Arora, managing director at Noida-based real estate firm Supertech this festive season is not so encouraging this year, despite so many offers.

Veena K,

8th October 2014

Comment

Even the Santhosh Kumar, chief executive-operations, at property advisory firm JLL, said there is not enough confidence among developers to launch new projects. Sales during the festive season are much lower than expectation.

Sujan Mitra,

8th October 2014

@Sujan,
According to data by the developer and the brokers there were about 7.6 lakh unsold apartments across India at the end of June.

Veena K,

8th October 2014

Comment

@Veena K,
The company has launched a festive season scheme for its existing projects in Noida, where buyers can pay 10% at the time of booking and the rest on possession. Several other builders across markets have launched concession schemes in existing projects to pick up the demand.

Sujan Mitra,

8th October 2014

You are absolutely right,
According to data by the developer and the brokers there were about 7.6 lakh unsold apartments across India at the end of June.

Veena K,

8th October 2014

Comment

Well Veena,
Unlike the last years, builders this year had keep out the desire to launch new projects in the season, focussing instead on reducing the inventory that has collected over the past few quarters.

Sujan Mitra,

8th October 2014

Hi,
Do you know that only 27 new projects were launched this September across the top 15 cities against 279 in the same month last year and still there is too much existing inventory waiting to be sold.

Veena K,

8th October 2014

Comment

Yes, I heard. unlike the last years, builders this year had keep out the desire to launch new projects in the season, focussing instead on reducing the inventory that has collected over the past few quarters.

Sujan Mitra,

8th October 2014