The real estate market is slowly maturing and adhering to delivery schedule by the developers.
The developers are all willing to keep to the time schedule that they have determined for the delivery of their projects in spite of the ongoing downturn that has gripped the sector.
Unwilling to list the actual numbers, the developers informed that the average residential booking for their projects has not been affected in the recent past. Moreover, many developers are planning to launch their new projects by the end of this year.
Uttar Pradesh, in the recent past, has been propitious to attract almost all big names in the real estate business with the likes of Ansal, Parsvnath, Unitech, Omaxe, Sahara and Mtech.
But the recent economic downturn has affected the pace by which these sites were earlier constructed. With majority of townships expected to offer complete possession of flats by the end of next year, the developers are in a fix given the swelling costs and rising bank rate that is adversely affecting the sector.
According to experts given the current downturn that has gripped almost all sectors in the country, in real estate delivery of projects will play a crucial role.
More From This Section
“Delivery of project at the said time and the quality of the same will help developers foster through these difficult times,” Sunder Lal, Head (Sales), Sahara Prime City Limited told Business Standard.
Responding to whether the customers will have to bear the burden of the ongoing recession and sky high inflation, Dharmendr Jain, General Manager (Marketing), Ansal Housing and Construction Limited informed that while deciding the price for the buyers the company take in to the account certain inflationary cost and therefore inflation as such does not make much of a difference to the pricing.
“Until and unless it is exorbitant wherein we have no other choice but to pass on the increased cost to the buyer as per the government rules which is always mentioned in our agreement with buyers,” he added.
Explaining further, Lal said that the rate of interest for house loans do not affect the customers desire to own a house. According to him ‘house’ is the single most important essential necessity that a man desires and will want to acquire it in his life time.
“The rate of interest makes no difference for the customers. Houses were selling when the rates were 7 per cent and even now they are selling when the rates are nearing almost 11 per cent.”
According to MM Johri, General Manager (Marketing), Parsvnath Developers, the orientation now is much towards the lower end and affordable housing. He further informed that Parsvnath is mulling to launch its new project dedicated on the same lines in Lucknow recently.
“Given the rise in prices and cost of living becoming dearer, there is a need to design and think for the customers across various sectors,” he added.
According to industry insiders the real estate developers who have their own money put into the projects and those who can generate money through sales, can sail safely through any situation whether the conditions are ripe for the industry or not.