 "Developers bank on result day mania to boost sales via sms, email")
Book your Unitech property without any further delay. Choose from plots, luxury villas, independent floors and range of apartments in your perferred city in India and avail immediate price benefits, according to an email advertisement from Unitech. Agents are spreading words about new apartments from Ansal, Vatika Group, M3M amongst others.
With May 16 being the elections results day, developers are trying to push up sales riding high on the euphoria that there will be stable government which will bring back positive sentiments taking the realty market onto its revival path, according to experts. Realty sector, which is struggling with low sales and high inventory, might get a much needed push post elections.
More From This Section
“Prices will revise but not immediately. Only after 5-6 months, the prices might upwards provided there is an economic stability,” an analyst tracking the sector says.
According to the Housing Sentiment Index (HSI) assessed by IIM Bangalore and Magicbricks.com, property prices are likely to increase after six months of a new government.
“Home buyers across 8 of 10 cities surveyed expect real estate prices to go up over the next six months. Cities surveyed include Ahmedabad, Kolkata, Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore and Chennai,” the report adds.
Sudhir Pai, Business Head, Magicbricks.com adds, “Indian real estate is bound to remain attractive in the medium term with faster growth expected in the Tier II cities. Competitively priced urban pockets such as Noida, where robust supply is backed with a promise of better infrastructure, received a thumbs-up from end users. However, active interest will take another six to nine months, since consumers expect prices to go up only after six months, post the 2014 elections.”
The real estate sector is holding its breath for the potential optimism that is expected once the results are out and this optimism is expected to boost transactions and lift homebuyer sentiment, according to Ramesh Nair, COO – Business, JLL India.
“There is no doubt that the actions and inactions ascribable to the current government have made homebuyers and developers anxious. The next government’s economic and employment policies will be key drivers to growth in the real estate sector for the next five years. 2012 and 2013 were not the best years for the Indian realty market, and the slowdown impacted all asset classes, except in a few pockets. Revival is no doubt the need of the hour.There is a sense of hope among developers for a positive post-poll scenario,“ Nair said.
The ongoing political uncertainty had impacted buyer’s and investor’s confidence. It is expected that the demand will return in the sector, once sentiments are positive but it will require much more than sentiment for a full revival in the sector.
As Anshuman Magazine, chairman and managing director, CBRE India puts it rightly. “If the poll outcome is a strong government, the sentiment will improve.But unlike the stock market, real estate cannot bounce back on sentiment alone," he says. Economic fundamentals must improve and interest rates must come down for demand and revival in property, he adds.