India witnessed a growth of 85% in property investments in the first nine months of 2017, compared to the same period last year, says Colliers International’s recently released report titled ‘Of High Growth, Low Real Rates and Black Swans’.
What has made Bangalore real estate market so very different? Has Bangalore been just blessed with climatic conditions, thriving economy of the region and talent pool or the developers in the city have been conscious to learn from the mistakes of other markets?
An outside view on the Indian real estate market may get confused with the fact that mismatch in delivery and performance is lesser in luxury projects than even affordable housing. Isn’t it a fact that buyers in low income housing are more price conscious and more concerned to check & cross check than those nouveau riche who have enough money to splurge?
Beating the slowdown blues, Bangalore-based developers DLF and Brigade continued their growth momentum with increase in revenue an profit. DLF, on the contrary, continued to lose the market share and revenue as slow sales hit the developer leading to quarter-on-quarter slide.
The Indian real estate market is not a single homogenous entity. There are seven major metro markets, each behaving differently, with different supply and demand dynamics. There are many different verticals within real estate – residential, commercial, retail, hospitality – and within those there are segments focused on different customer bases. With so many permutations, there is no ‘one size fits all’ answer. The urban southern markets in commercial office sector, has seen consecutive years of positive sentiment, take up and consequently rental growth.
Mahindra Lifespace Developers has introduced, its new brand of industrial clusters located across India. ‘ORIGINS by Mahindra World City’ envisions accelerated economic growth via world-class industrial ecosystems that will attract investment in manufacturing, and promote ‘Make in India’.
Real estate industry in our nation has always been in question due to prevailing autonomous rules and guidelines of every developer. There is an immediate need of a governing body which can address all such concerns of the sector. Government of India at national level has already introduced RERA which will address all these concerns.
During the CREDAI national convention few years back, a miffed real estate seemed to settle scores with the then Union Urban Development Minister Kamal Nath. Displaying stiff opposition to the proposed real estate regulator, the builders’ body went critique to say it is not actually a regulator bill, but builders’ harassment and public amusement bill.
Some discussions about best practices in the Indian real estate has started because today the investors also do not want their money to be locked in an asset that is neither growing nor is likely to get delivered. Worse even, there is no authority or court in India that has been successful in getting a stalled project restarted or in forcing a bankrupt builder into selling his assets to compensate his allottees.
A section of home equipment suppliers even admit that over-dependence on builder contracts that ensure bulk buying, going overboard on commitments and under-utilisation of retail network are the major reasons why they are trapped in a vicious circle today.