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Higher margins and consumer resentment at developers in new or under-construction projects are prompting a shift to resale of residential properties and sale of independent plots.
So, too, for plenty of agents and brokers in Noida, Delhi and Mumbai. Although these are initial trends, experts say this could grow because of rising consumer activism.
An analyst said the broker community has to often take responsibility for delays and other issues related to developers and hence the shift to the resale market.
According to analysts, the number of queries for 'ready to move in' properties has seen the biggest rise in recent times after the formation of a stable government at the Centre.
"The queries for 'ready to move in' have been increasing rather than for new projects. Buyers are sceptical about new properties by developers because of issues such as delays in delivery, carpet area (wall to wall) less than what was actually committed and other quality issues," says Sanjay Sharma, managing director, Qubrex.
A broker based in Noida said people have lost faith in developers."It will take big efforts on the part of developers to bring back consumers. Apart from the positive sentiments, we also need a certain accountability from developers for completing of projects on time."
In the south, though, the real estate market is quite different. A large number of developers have high credibility, especially because it is primarily an end-user market. On the other hand, Delhi-National Capital Region and Mumbai are mostly driven by investors. Developers in the south have a good record of delivering projects on time.
Experts in the sector were hoping for a revival soon after the new government took office. The market has been witnessing declining sales and higher inventory for two years. More, developers are hard-pressed for funds, as not many lenders are willing to lend money to the ailing sector.
Anshuman Magazine, chairman, CBRE South Asia, says the level of interest in the market has improved but it is rather early to assess the impact. "You can't expect a reaction in the realty market like stock markets. Sentiments are positive and encouraging now but revival can only be seen towards the end of the year or later."
Delivery delays are rampant in the sector, leading to protests by buyers. DLF and Supertech faced the ire of buyers recently in the form of cases in different courts and before the Competition Commission of India (CCI).
The Supreme Court asked DLF, the country's largest in the segment, to deposit Rs 630 crore, pending the outcome of a final order on a CCI verdict. The latter decision came on a peition by buyers of one of its projects in Gurgaon, alleging unfair trade practices.
The Allahabad High Court had recently ordered demolition of two towers in Supertech's Emerald Court project in Noida, on a petition by buyers alleging violation of building norms. Supertech has also challenged the order in the Supreme Court.
There are many such cases pending before the courts and CCI, scheduled to be heard in the coming months.
