In contrast to developments in the corporate office space, demand for residential space remained subdued during January–March 2016 period. Despite price movements remaining stable, home buyers’ demand remained low in recent months due to existing high price points coupled with a cautious buyer sentiment. In many ways, the year 2015 was a defining one for the residential real estate segment in India. This was the period when the market began to evolve, along with customer expectations as well as market dynamics. The most important change among these, perhaps, came about in the outlook of the home buyer.
As Pankaj Bajaj Eldeco and President of CREDAI-NCR said:
“Real-Estate industry is a customer for the construction industry and the benefit of faster construction cycles or lower cost would accrue to it and ultimately to the general public.”
Unlike previous years, the industry is no longer dealing with end-users who were satisfied with offers and property brochures alone. The key words in customer satisfaction for home purchases in 2015 became project delivery, pace of construction progress, and product quality. The inventory of completed and available housing units in most micro-markets of leading cities in the country, moreover, helped home buyers to make their purchase decisions. Much like the home buying process evolved markets around the world, the residential real estate segment in India caught up with the going trend as well, by enabling investors and end-users to take informed decisions with ready products rather than on the basis of launch information and product literature.
Apart from the Government’s renewed focus on large scale urban infrastructure and development of affordable housing, the Central Bank, for its part, remains accommodating towards further easing of interest rates. These moves could help spur property purchase decisions, propelling the market forward. Several regulation and policy initiatives launched recently—such as the Real Estate Bill—are also expected to boost home buyer sentiments.