Buyers Eye Projects At Advanced Stages Of Construction
Buyers are opting for projects that are showing visible progress in terms of construction records, according to PropTiger DataLabs report for the second quarter (Q2) of the financial year 2016-17 (FY17) .
Around 15 per cent of sales in the top nine cities were registered in completed projects owing to the fact that developers focused on speeding up the construction work while 70 per cent absorption was from the under-construction projects owing to price advantage. However, buyers have been cautious enough to put in their money only in projects that have shown certain movement in construction. Sixty per cent of sales in the quarter were witnessed in projects that have been launched more than a year ago.
The nine cities included in the analysis are Ahmedabad, Bengaluru, Chennai, Gurgaon (including Bhiwadi, Dharuhera and Sohna) , Hyderabad, Kolkata, Mumbai (including Navi Mumbai and Thane) , Noida (including Greater Noida and Yamuna Expressway) , and Pune.
The highest sales
The lion's share in terms of absorption rates at 58 per cent can be credited to Mumbai, Pune and Bengaluru as of July-September 2016, with Mumbai leading the pack with 21 per cent share. This confirms that wherever economics and opportunities govern the market, real estate has shown visible signs of recovery. Know more about the star performers of Q2'FY17.
A healthy ground
Several cities have also fared considerably well in terms of commercial real estate. While IT major Infosys has leased 2.10 lakh sq ft of commercial space in Bengaluru, another IT giant Cisco took up 1.72 sq ft space for its second delivery centre in the country. Apart from these, various realty players are keen on investing. Macquarie Infrastructure and Real Assets (MIRA) and Tata Housing have joined to invest Rs 2,000 crore into the luxury residential segment. Research shows that Bengaluru also topped the charts when it came to demand for prime office space.
Affordable on the platter
The sub-Rs 50 lakh budget range saw the most number of new launches across top nine cities, followed by those in the premium range of Rs 75 lakh and above. With the real estate sector taking a beating in the last couple of years, developers have rightly concentrated on the affordable segment to boost sales. While the festive season will do some justice to the uptake, projects with a cost and location advantage would garner more interest through the next year.
Click here to view listings of properties worth up to Rs 50 lakh
But here is the catch.
“Properties below Rs 50 lakh will move in the market only if it boasts the necessary amenities that a buyer is looking for,” says Elizabeth Abraham, a businesswoman based out of Bengaluru. Keen on a second home, her best bet was to settle for a unit that was priced higher but had amenities she was looking out for.
“Projects in good locations are priced at a premium and while it is understandable, affordable projects are those that are being developed in the fringes or in areas where connectivity is still an issue. This needs to be addressed by authorities,” she adds.