If you are looking at buying residential property next year, you are likely to find many more innovative payment schemes, but also a drastic trimming of frills in projects.
Residential real estate developers realised that homes were not selling at the current price points as previously offered freebies also did not help them boost sales.
In order to lure buyers, residential real estate developers will offer buyers attractive pre-launch benefits in a bid to accelerate sales momentum in the initial months following a launch.
“Developers with large-scale projects with a greater share of unsold inventory will be under greater pressure to offer discounts than those with smaller projects and limited inventory,” Jones Lang Lasalle India said in a report.
Bangalore and Chennai is expected to witness lower residential project launches next year, but this year both the cities recorded a historical high in terms of launches.
In 2013, new organized retail project completions will increase significantly (by 109 per cent y-o-y). Chennai, Hyderabad, Kolkata and Pune will be among the major contributors to this increase, with a 53 per cent share of the country’s overall mall supply for 2013.
The primary reason is that a sizable amount of supply that was expected to reach completion in 2012 has been being pushed to 2013. Altogether, India’s major cities like Mumbai, NCR-Delhi, Bangalore, Chennai, Pune, Hyderabad and Kolkata will see the addition of close to 9.5 million square feet of mall space in 2013.
Mumbai, NCR-Delhi, Bangalore and Chennai will together contribute 70 per cent of the total retail space absorption. Other cities like Pune, Hyderabad and Kolkata will account for the remaining 30 per cent, the report said.