Is the realty market reviving?
The last nine months (September '08 to May '09) have been extremely
challenging for the Indian realty sector. The meltdown affected the sector, including builders and property seekers. While builders were unable to raise capital for their projects, property seekers were deferring purchases due to job uncertainty and doubts about future earning prospects.
Over the last three months (June '09 onwards) the scenario has taken a positive turn and the sentiments in the property market are echoing some initial signs of revival. According to the report 'The Real Picture', conducted by Makaan.com, a realty portal, in leading metros and Tier II cities of India, an overwhelming 79 per cent of national respondents feel that the sector has revived in the last three months, 11 per cent are still waiting for the market to boost further and another 10 per cent are unsure if the segment has improved.
The study was carried on the portal between August 11, 2009 to August 20, 2009 and saw participation from over 3271 brokers / realtors, nationally. Most of the respondents who participated in the survey belonged to the age group of 26 - 35 years.
Signs of revival
The recovery in the sector can be attributed to the steps taken by the government to infuse liquidity and reduce interest rates on home loans, thereby encouraging people to invest in real estate. Clear signs of an economic revival have boosted property seekers' confidence.
Respondents across cities believe that the Indian property market is on its way to recovery. The scenario is echoed in both metro and non-metro cities, as a majority of the respondents agree that the property market has improved both in case of sentiments and transactions; although respondents from Bangalore and Chennai seemed less optimistic about this recovery.
Affordable housing - the need of the hour
Realtors across the country are experiencing a high demand in the sub-40 lakh segment, 66 per cent of the respondents confirm that majority of homebuyers today want to buy houses in this segment. The the same time, 26 per cent of those who participated in the survey received enquiries for houses within the range of Rs 40 lakh to Rs 75 lakh. Respondents in Delhi, Mumbai, Bangalore and Chennai feel that maximum demand for property is in the under Rs 40 lakh segment. However, there exists a sizeable demand for the mid-segment (Rs 40-75 lakh). The luxury segment (above Rs 75 lakh) continues to have few takers. Among the metros, Bangalore has the maximum demand (75 per cent) for affordable homes followed by Chennai, Mumbai and Delhi with 65 per cent, 53 per cent and 52 per cent demand in the segment, respectively.