Projects worth INR 4,64,300 crore for a total of 575,900 units are already significantly behind schedule. These 5,75,900 units have been stuck since 2013 or before. However, what is even more disturbing than these staggering number is the fact that in many of the states RERA has been diluted to the extent that it allows the erring developers with the existing projects to get away with the fault lines.
These are the findings of a pan-India survey by Track2Realty. The survey was aimed at assessing the track record of the Indian malls in terms of meeting the customer experiences and rating & ranking the best malls in the country. The survey was carried in 20 cities – Delhi, Gurgaon, Noida, Ghaziabad, Chandigarh, Amritsar, Mumbai, Pune, Kolkata, Bhopal, Raipur, Lucknow, Jaipur, Bhubaneswar, Ahmedabad, Bengaluru, Hyderabad, Chennai, Kochi and Coimbatore.
REITs or Real Estate Investment Trusts might be the most debated and expected development in the Indian real estate, but a majority of Indians are yet not convinced how will it operate. Even more in number are questioning the opinion of experts as far as its lucrative ROI (Return on Investment) is concerned. The Indians believe given the market uncertainties REITs won’t be the game changer for the Indian real estate, unless the returns are really tempting.
The prevailing sentiment among the home buyers is quite negative. The developers have definitely failed to identify the strategic and operational challenges that can goad the sector to adopt the best practices. There is no specified industry standard that can be widely accepted as best practice and the industry bodies are seen as builders’ lobbies.
News Point: #Track2Realty pan-India survey finds real estate might be…
At a time when attracting the best talent is as challenging as retaining them, and lack of quality professionals affecting the fortunes of many sectors, including the Indian real estate, it is appalling to note that the developers have yet not learnt the value of professionals.
Some key findings that indicate the aspiration quotient and standing of the Indian real estate:
88% Indians find real estate is still best asset class to invest
72% believe pre-launch or early stage of construction is best bargain
78% maintain upcoming locations give better returns than prime localities
84% homebuyers are sulking & repent their home buying decision
46% homebuyers have too serious issues with the developer to reconcile
Track2Realty Exclusive: Home buyers across the country find the reports of price appreciation a manipulative marketing myth. They blame a strong cartel of brokers/underwriters responsible for artificial appreciation which does not have any market logic. What comes as a bad news for the developers and promises to redefine the market dynamics of the real estate is the fact that buyers’ awareness has caught on the market manipulation that appreciates property prices unreasonably. It also indicates the marketing strategy of the realty companies is not grounded while operating in an eco system of brokers/underwriters to absorb the artificial appreciation.
Track2Realty Survey: 70 per cent of the Indians who have either bought a house or are planning to buy believe brand reputation only amounts to the developers’ past projects. More than that, 78 per cent maintain the track record of timely delivery of the project is the best way to judge the developers’ brand.
Track2Realty Exclusive: Young professionals in metro cities are no longer the demand drivers of residential property. More than half of them, as many as 57%, say they would prefer to stay in rented apartment and instead invest in their tier-II and tier III city home town for better appreciation potential. 78% of those working professionals with double-income who have bought a house in metro now want to invest in their home town for second home.