The overall situation of the real estate industry was in a state of lull in the last three years. The unsold stock was gradually piling up and the industry was gasping for liquidity and more sales. In cities like Gurgaon, Noida and Hyderabad the developers started to lower the price levels by tailor making the high priced High Income Group apartments for the middle income group (MIG). With the swearing in of the new government a year back the country’s real estate sector started to become a bit more optimistic as they thought with the real estate friendly government promises, things can change. The first budget of the Narendra Modi government gave a few energizing promises like the REIT, the real estate regulatory bill, the RBI cuts for the interest rates, etc.
Let’s probe into the macro market situation and see what has actually happened to the buyers’ sentiments. The indexes of the global real estate consultancy firm Knight Frank along with the estimates of FICCI shows that new launches are more on the anvil and is to improve marginally as per the estimates based on January to March 2015. The report also says that the new launches in the cities like NCR, Mumbai, Bengaluru, Hyderabad, Chennai and Pune are going to have a shortfall of new launches due to the pile of the unsold stock already surmounting.
The new launches of products in the real estate sector has already come to a staggering half in the quarter of January to March 2015 but the volume of sales have been observed to have remained steady. But other surveys and indexes also hint that the new launches would witness a marginal increase in the next half of the financial year. But the estimates also say that the pricing would also remain stagnant on the backdrop of a subdued demand.
According to the report of the index of FICCI-Knight Frank the sentiments have dropped over the figures of last year as the sales volumes did not improve. The 15 percent of the surveyed respondents expect an increase in the prices which the proportion of the population expecting an increase reduced to less than about half of last years’ numbers or even the numbers of Q3, 2014. The survey says that just 33 percent of the total opinion poll believed that there is a possibility of hike in prices in the ensuing six months.
The report reflects that the market is about to witness a few new supply of office spaces during remaining period of this year. The vendors of the real estate segment opined in the opinion polls that there should be a substantial increment of new office spaces on the back drop of the latent demand sensed by the market. The optimism for rental appreciation is also high in the ensuing six months.
The sentiments for the appreciation of office space rentals have been witnessed to be the highest in the last six quarters. 85 percent of the respondents believe that the rentals have a high degree of chances of appreciation. The report clearly remarked that after the election of 2014 the stake holder’s sentiments of the real estate sector remains to be quite optimistic. The current sentiment score is being hovering around 51 and future estimates are anticipated at 64 which are quite healthy. This does not only shows a positive trend of the sentiments but also indicates a very positive undercurrent of the market sentiments. The government’s initiative like “Make in India” programme has boosted up the stake holders’ sentiments to a considerable extent.
The report points out that the North and the West experienced a dip in the levels of sentiments in the quarter Q1 2015 and the South and the Eastern Zones expect a steady revival of the real estate sentiments. Cities like Delhi and Mumbai are great drivers of real estate business in India and the figures of the last quarter points out that the recent political upheaval in Delhi and an ambiguous development plan have taken a toll on the sentiments of these cities and the respective zones.
Bangalore people can check properties many builders but Dreamz GK has projects with affordable price which make every persons wish to buy a home.