season for the real estate industry,” said Gulam Zia, national director – research and advisory services at Knight Frank India.
Even a good amount of discounts that were on offer failed to attract home buyers. “This festive season saw a lukewarm response from home buyers, despite the usual sales discounts and freebies. Property prices have stabilised and come down by about 10-15 per cent in certain markets of Delhi NCR and Mumbai but home buyers continued to prefer a wait-and-watch approach in these inflationary times,” said Anshuman Magazine, chairman & MD, CBRE South Asia.
Even the developer community accepts the fact. “The market has not responded as per expectations and sentiments were low,” said Tarandeep, GM-Marketing at Paras Buildtech.
The state of the real estate industry is a clear reflection of the state of the economy and the sentiments of the consumers in the country and that is currently affecting the sector the most. A depreciating rupee has also affected sales in the luxury and high-end segments as high net worth individuals and non-resident Indians are waiting for things to stabilise before they can take investment decisions.
“Due to prevailing negative sentiments in the economy, high inflation and interest rates, sales was below expectations across markets. The steep decline in the value of rupee against the dollar affected the sale in luxury and ultra luxury segment,” said Anil Kumar Sharma, president, CREDAI-NCR who added that there was some positive development on the front that new housing projects came up around the festive season.
Experts feel that slowdown in economic growth and concerns around job security have had a major impact on the sector and potential buyers are taking time to decide. They are now waiting for the General Elections to conclude and stability to return on the economic front before taking major investment decisions such as buying a home.
WHAT TO EXPECT
It has been a tricky period for the developers across the country as even a price drop of over 10 per cent in several pockets and freebies on fresh bookings have been futile and failed to attract the buyers. Industry insiders feel that there may be no major movement in the next 6-8 months.
“Builders are caught up as to what to do as buyers did not come to them even after they brought the prices down. I think status quo will be maintained till the General Elections conclude and till the time there is