The real estate market is recovering positively after the global meltdown that hit various economic sectors. The Indian real estate market was also affected an extent. FE spoke Rajendra Sawant, Chairman, Nirman Group about the real estate sector, which is recovering and weekend home-aconcept that is now gaining popularity.
How is the real estate market reacting to the scenario post-recession?
The market is reacting positively and there is demand from the customers. The residential demand is still going strong, but there is stagnancy in the commercial market. If one goes through the registrations made at various registration offices in and around Mumbai, one can see over a lakh houses registered, which is a huge number. And industry sources say that the companies financing housing loans have sanctioned loans to more than 4-5 lakh people. The figure indicates that there is a demand. If one sees the MHADA housing scheme, about 8 lakh people bought the forms in different segments, but only 3 lakh people could get flats. So, the remaining 5 lakh are potential buyers who are really serious in buying a property.
The prices are high due to various reasons. One is due to Direct Foreign Investment (FDI), which indirectly demands developers raise the price. But the property rates should be corrected.
The concept of 1BHK flats has become a thing of past, but there are many buyers who can only afford one 1BHK flats?
I agree that there are many buyers for 1BHK flats due to the cost factor involved. A 1BHK would cost somewhere around Rs 50 lakh, which is not possible for someone with a shoe-string budget. In fact, we are selling 1BHK flats at our projects at Jogeshwari and Malad and we have a got a good response.
A weekend home is an emerging concept. What is preferred choice of people wanting to buy property in this segment?
Weekend home is an emotional buy for any customer. It is something that not only provides him with satisfaction, but also with comfort and pleasure. The concept is slowly gaining popularity. The people wanting to buy weekend homes are mostly from the Higher Middle Class and above. Places in and around Mumbai like Neral, Karjat, Palghar, Dahanu and Alibag are preferred destinations for weekend homes.
It also depends on the budget. An investor with a larger budget would mostly go ahead with a villa. Investors with lesser budget will go ahead with nonagricultural plots and