What has also fuelled this inventory creation is the fact that the Centre recently gave infrastructure status to smaller homes. This will help builders get funds easily and also give them more time of five years from the current three years to complete the projects.
Indian real estate is yet to reach to a level of maturity where there is authentic due diligence that is accepted and honoured as third party and neutral platform for the buyers. Unfortunately, there is a collective conspiracy of silence on part of the developers by dismissing any such platform, as and when any attempt is made. The larger universe of the developers are still not very comfortable with a critical review platform that would rather lend them credibility for the right kind of projects.
Indian real estate, of late, has woken up to the new reality of consumer blackmailing. While in most of the cases the grudge of the homebuyers has been genuine; it seems there is an organized mechanism emerging that want to encash upon the homebuyers’ acrimony with the developers.
The penetration of basic personal packages of insurance like health or home is dismally low. Health Insurance is less than 10 per cent of the people who can afford it. Home insurance is still less at hardly 1 per cent. So, there is scope for personal lines of insurance especially the retail lines of business to grow exponentially.
Amidst all the misleading claims and marketing exaggerations, location mapping is the most glaring one. Generally maps are not to scale and give the wrong perception of the location of the project. For example, the brochure will say 10 minutes from the airport or commercial district; it does not state distance in kilometres.
The expectation of an overnight change is because the Act is a result of years of expectations on part of the buyers. The developers, on their part, are also changing their business strategy overnight to play it safe with the new regulatory regime.
Bangalore has become a hub for NRIs & HNIs. Bangalore has a large base of expatriates who live in the city and working abroad, families of these residents are well travelled, cultured and have sophisticated tastes. Growth in the IT Industry and a rapidly increasing number of High Net-Worth Individuals and movement of expatriates has brought Bangalore real estate in to prime focus for NRIs
There has been less of compact housing on offer and hence one wonders whether there are few takers for 1BHK in the city or there are certain other fundamentals of execution that come in the way of creating compact housing units.
Contrary to the general perception that only the Richie Rich can buy a house in Mumbai, the fact of the matter is that there is something for every budget segment. If not the fancy luxe living in posh areas, a roof over the head is always there with the rider of more money adding to more amenities and lesser travelling distances.
Even for the developers, if he is overly dependent on investor he will deliver a ghost town which is not a god thing for a developer for his subsequent project. Second thing is that an investor is a fair weather friend and the day he is not making money he will be harsh to the developer and talk about him in the circle that matters. That is enough to damage the reputation of the developer.