Important themes that emerged in residential property market in India during 2009?
Slowdown always brings out the best from any industry and that is precisely what happened to the Indian real estate industry in 2009. Hard facts that went un-noticed during the boom time (2004-07) came back to light and industry went back to the basics. Many important themes emerged in 2009, a few important among them were:
1. Affordable housing – The biggest theme of 2009 was the acceptance & focus on Affordable Housing (housing under 40 lac). Developers finally recognized the fact that the real demand was in this segment and that it makes sense to concentrate here.
2. Pay for performance – Home buyers turned cautious and selective about their choice of project and developer. Pay for performance manifested itself in several dimensions over the course of 2009. Firstly, developers with good track record of project delivery and governance gained currency over their defaulting counterparts. Secondly, home buyers started demanding construction linked payment plans versus the outdated time based (a big step that linked the payment with performance).
3. Home buyers unity – 2009 also saw home buyers unite against defaulting developers. Buyers formed Internet groups to discuss their problems and take up their concerns thru this united forum. Home buyers unity was unheard of in the pre 2009 era. This new theme helped buyers put constructive pressure on the developer.