I am also conscious of the fact that a large number of developers are hoping against the hope that once the tide is over and investors return to the market their ordeal would be over. I may sound to be disappointing gentlemen but the era of investor driven real estate business is over.
As per the recent Bangalore Development Authority’s (BDA) Revised Master Plan 2031 report, Bengaluru’s 1.18 crore citizens waste 60 crore man hours annually. This translates to INR 3,700 crore, including INR 1350 crore on fuel alone, and the rest on productivity (man hour) loss.
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.
Life changed for him in the last 3-4 years with the Eastern Freeway. Now he travels to same office in 40-45 minutes. The new route via Eastern Freeway to Carnac Bridge and then Nariman Point is what he never visualized as a reality earlier.
The homebuyers’ acting as de facto consumer courts raises a fundamental question as to whether any of these buyers’ associations have any legal right to intervene suo motto and address the grievances of the buyers. The legal opinion is pretty clear on this.
The real estate markets across the major cities is today witness to a new spate of consumer activism which is more political in its functioning than consumer centric. Worse even, many of them even operate as the de facto consumer courts in advising others in how they should take on the builders.
The Consumer Confidence Report 20:20 finds that the developers who have been focused on the buyers with quality projects and meaningful dialogue have been rated higher by the consumers at a pan-India level.
A friendly budget is always on the wish list of everyone. Across the industries the stakeholders, including the consumers, have more or less the same expectations with the Finance Minister to call it a friendly budget. But in the context of the Indian real estate a friendly budget for the sector does not necessarily mean a homebuyer friendly budget.
The real estate sector is in dire need to communicate an connect with the stakeholders and society at large. In the name of communication all that they do is to hire a PR (Public Relations) agency for the purpose of brand building but do not understand what is communication in the right context.
Beyond the economic rationale, the developers assert that they are doing their homework properly. One of the largest developers claims it has its own empanelled brokers to give constant feedback on the market before the launch of any new project. They supplement it with a proper in-house research of the market, the catchment area, competition and other market forces.