The low consumer confidence has been linked as much to peoples’ lack of confidence in their own ability to pay as with the employment uncertainties. Collectively, the buyers’ risk aversion in today’s economy as well as the developers’ unfair business practices have eclipsed real estate like never before.
It is not just the ambiguity around the RERA that makes the Indians feel there is no hope for them. Most of the reform measures have not touched upon the average Indian homebuyers, claim close to three fourth of the buyers, as many as 72%.
The Northern Peripheral Road (NPR), also known as Dwarka Expressway, is an 18-km stretch of road that is being developed under the public private partnership (PPP) model. This stretch will connect Dwarka Phase II and Palam Vihar to National Highway 8 near Kherki Dhaula and Pass Pataudi Road. This is a highly lucrative project that has been taken up by the Haryana Urban Development Authority (HUDA).
The role played by the DGTCP (Director General Town & Country Planning) has also been in question because of its alleged inaction in addressing the concerns of the homebuyers regarding the blatant violations of the provisions of the Haryana Development & Regulation of Urban Areas Act, 1975 and Rules of 1976 made thereunder while failing to stop the illegal sale of units being made by IREO in its name without having been granted any permission/approval for the same by the DTCP under the extant provisions of applicable laws.
This may not be music to the ears of the developers who are hoping against the hope that the recent policy changes & reforms would bring the homebuyers back to the market. But the ground reality is that for a vast majority of the Indian homebuyers the measures like demonetization, GST, RERA or Benami Transaction Act are more for academic discussions than making any tangible changes for them on ground.
Bhiwadi as a city has for long weathered the perception of an industrial belt which was seen to be an alternative destination for those who can not afford Gurgaon or Manesar. After all, office occupancy pattern has been a benchmark of the prosperity of a given city since it indicates the jobs and disposable income which eventually is a catalyst for the growth of housing and retail as well.
The entry of corporate giants into the real estate space is all set to take the Noida growth story to the next level. Already, Godrej Properties and Tata Housing have entered into Noida market through a joint development model. The market buzz has it that a couple of more corporate giants are to soon announce their Noida entry.
An analysis by Track2Realty vis-à-vis the volume of office space consumption per household – not only in India but also internationally in London, Singapore, New York, Tokyo etc concludes that there is equilibrium when the office space consumption is around 60-65 sq feet per household. In India it is rather surprising that the ratio per household even in a city like Mumbai is 25 sq feet. Kolkata has a dismal only 14-15 sq feet office space per household. In Delhi-NCR it is again 20-25 sq feet per household.
It seems the Union Finance Minister Arun Jaitley has failed to address the struggling and ailing real estate sector from the standpoint of both the homebuyers as well as the developers. However, what is all the more interesting is the fact that the developers are not overtly complaining. It is only the homebuyers who are sulking while the developers are trying best to put up a brave face.
The hopes of middle class homebuyers have dashed and they blame the Finance Minister for presenting an election-oriented budget. Many even question the direction of the government where the focus has suddenly shifted towards the rural and farm sector in the last full budget presented by this government.