New Project Launches Decline. What Does It Mean For Brokers?
The number of new project launches in the Mumbai Metropolitan Region was down by almost 40 per cent in the first half of 2017, as per industry reports. The real estate developers who were already facing tremendous challenges on account of low demand, oversupply and difficult business environment are now busy in aligning themselves with the mandatory compliance requirements cited under the Real Estate Act.
A similar picture is noticed in all other parts of the country, including Delhi-NCR, Bangalore, Hyderabad, Chennai and Pune, wherein hardly any builder is seen launching a new project.
What does it mean for you as a real estate broker?
Well, in the very first instance, this trend will appear as negative to you. However, at PropTiger we believe that if you re-align your business strategy and approach thoughtfully, you will be able to appreciate that this phase could be yet another period of 'silence before the storm'. Here's how you can prepare yourself to make the best out of the current situation and gear up for a brighter future:
- Focus on ready-to-move-in properties: In the past few years, nearly all the major property markets in India witnessed quite a good number of new projects. Over a period of time, a low volume of sales has resulted in an inventory built-up of ready-to-move-in properties at locations such as:
- Navi Mumbai: Khargar, Vashi, Panvel, Airoli, Kamothi, Koperkhairane and Roadpali
- Gurgaon: Golf Course Extension, Sohna Road, Sectors 37C & D, 81, 82, 83, 90, 103, 105 & 108
- Bangalore: Electronics City, Bommanahalli, Hosur Road, NGR Layout, Kudlu Gate and Rayasandra
- Hyderabad: Gachibowli, Bachupally, Alkapur, Appa Junction & LB Nagar
- Chennai: OMR, Sholinganallur, Ambattur, Kattankulathur, Avadi and Perumbakkam
Today when real estate developers have lost trust of customers by delaying projects and making false commitments, home buyers are looking largely for ready-to-move-in properties. Hardly anyone is willing to take risks with new projects. So, in this scenario, even if there is a dearth of new launches, it doesn't matter much for you.
- Get into re-sale business: The situation of oversupply in the past years has also translated into a pile-up of inventory with investors. The investor community is gradually falling in line with market reality, realizing that it is better to dispose their units which have blocked their funds for a long time and for no major returns.
- Become a deal master: An absence of new launches is rather an opportunity for you to become a deal master. In a vibrant market flooded with new projects, any broker can strike sales but it is the testing times which separate the wheat from the chaff.
The current market will wipe out many inexperienced brokers who jumped into this business just to make easy, big bucks. This will present an opportunity to those who are dedicated and have gained rich experience in providing housing solutions to end-users.