Indian Real Estate - Expert Speak
27-Apr-2012 | News-Press Release
As India’s real estate industry is still in a recovering state, industry experts think it is the right time for consumers to go for their dream homes before the prices shoot up.
Property expert SaiChandTalluri says it is still a buyer’s market in Hyderabad as absorption rate(ability of the real estate market to absorb or sell all of the houses for sale in a given amount of time) is expected to cross 12% of the total supply. According to RajalakshmiRaghavan(GM-Marketing Vasathi Housing), the absorption rate has increased from 11% in Jan-2011 to 12.5% in Dec-2011. “The initialexpectations are that it will not increase in the short term,” said RajalakshmiRaghavan, GM-Marketing Vasathi Housing.
As per industry expert SaiChandTalluri. The current overall absorption ratehasa significant improvement from 2010 which less than 10% of the apartments were sold.This has triggered a huge correction in the estate market.This was a clear indication of spectacular economic growth that India was witnessing for years.
In earlier scenario real estate companies sold a few hundred units before the launch. This can be considered as a clear indication for absorption rate in 2009. Year 2009 was entirely a seller’s market, which is now a buyer’s market, said RajalakshmiRaghavan. New launches in Hyderabad havedropped as developers have seenlow scope in the current market and they were not keen on adding supply, said SaiChandTalluri.
He pointed that 2.5K units arrive in Hyderabad market every year and real estate companiesare managing to sell half of them and the rest are carried forward to next year. He quotedthat the current inventory is completely sufficient as they will be sold out in the next two years.
“Even though the overall absorption rateis slow real estate market is active for completed projects as there is limited supply,” said RajalakshmiRaghavan, GM-Marketing Vasathi Housing. Sheconforms that not only first home buyers, but also second home buyers are also adding to the market.
“Stock markets are unstable and gold prices are rising day by day, so people keep an eyeon real estate since this the opportunity which gives more returns” said SaiChandTalluri
“Negotiations with customers will be tougher in the coming years as market will turn to be a complete buyer's market. Demand for Affordable Housing with luxury amenities will increase and customer will have many options to choose from.” RajalakshmiRaghavan GM- Marketing Vasathi Housing.
As per internal survey report of Vasathi Housing Limited, IT is driving the property market in Hyderabad city. Areas around the HITECH city and Shamshabad had a tremendous growth in residential and commercial real estate. International players like Microsoft, Oracle, Satyam Computers and many others are keen in expanding their presence in Hyderabad. One best example is CISCO, which has hired 17,000 sq. ft. at HITECH city.
Some projects including VasathiAnandi located 13KM fromGachibowli is ready to handover from 31st Dec 2012. The sales are good and Affordable Housing is the key success point for the project.
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