City Beat: Post Demonetisation, Developers Contemplate Going Online [Video]
One of the biggest markets with a large volume of unsold inventory happens to be the National Capital Region (NCR) market. While residential realty might have hit a low, commercial space absorption was third in the country, preceded by Bengaluru and Hyderabad, which means we have enough and more reason to believe that not all is lost.
Meanwhile, the Faridabad-Noida-Ghaziabad expressway has raised hopes for many potential home buyers looking at an affordable purchase. This 56-km expressway that is aimed at decongesting the routes between the three micro-markets, is being touted as the demand charges in times to come. Land parcels that were till now locked due to infrastructural issues could come to the fore making real estate along these areas cheaper. As per reports, whether the expressway should be extended up to Sohna is being deliberated.
In another development, while demonetisation shook much of the sector, developers are steadily moving towards online real estate. This means, very soon, you could buy a property at the click of your mouse. The move favours those projects that are in advanced stages of construction. What’s more, developers are also taking a step forward to assure such home buyers that compensation would be provided in case prices fall further. These clauses would even be mentioned in the Buyer-Seller Agreement. For those who do not wish to delay a purchase any longer, this looks like an opportune time to buy.
However, despite Real Estate Regulatory Act (RERA) being so close, under-construction homes seem to have lost sheen and the trend may continue for a quarter or two. Market revival, though late, is expected to bounce back with greater transparency and accountability.
Could Private equity funds make realty look more appealing? If yes, Altico Capital has invested Rs 225 crore into Panchsheel’s Greens II, a Noida Extension-based project. At a time when much of the real estate sector suffers from financial crunch, inflated valuations, price escalation and delays, private equity (PE) funds may be the best way out. Along with Panchsheel, Altico has also closed deals with Vatika and SARE Homes.