Industry is nevertheless clear that such apprehensions are just teething problems. Jaxay Shah, President, CREDAI maintains that even though most states have not been able to implement it immediately and are in the process of doing so, yet both consumers and developers need to look at it optimistically. There will be teething problems initially, but as the regulatory mechanism sets in place, we will see a smoother transition into the new administration.
Browsing: Myth & Reality
In a business that lacked the critical element of trust and transparency, forget brand equity, the entry of corporate conglomerates was widely perceived to be change of business outlook for the sector. The collective consciousness accepted the promise that the corporate giants would change the brand perception of the sector in no time. This load of trust & opportunity goaded many corporate houses into the non-core expertise area of real estate.
The penetration of basic personal packages of insurance like health or home is dismally low. Health Insurance is less than 10 per cent of the people who can afford it. Home insurance is still less at hardly 1 per cent. So, there is scope for personal lines of insurance especially the retail lines of business to grow exponentially.
In residential space, the speculators can go to North India and invest in a pre-launch and make money in one year or two years. For mid to long-term investors the commercial spaces and retail work much better. But if one is looking at the real long term then one should better invest in land; nothing else can give as much returns as the land.
Moving forward, the moot point is whether the builders would decide to postpone their new launches keeping RERA in mind to avoid mid way issues. Within the built environment of real estate it is increasingly being questioned as to whether penalising builders for delays in the projects is justified given they rely on so many external factors. At one point government is coming up with consumer friendly RERA 2017 on the other hand government does not have any system or mechanism to give time bound permission to real estate sector developer, then how government will be successful in implementing the real estate.
‘Location, Location & Location’ has been the tried and tested format of success in the Indian real estate. It has been the best calling card for the developers. Many even assumed that if the developer has got a piece of land in any of the highly desirable locations, that itself is enough to sell the project.
Word-of-mouth publicity is a wish of all the developers both for sales and branding, yet the quest is to rope in a celebrity brand ambassador even if it has the only photo-opportunity connect with the project. Of late, there are a few case studies where the developers have used buyers as brand ambassadors.
Even for the developers, if he is overly dependent on investor he will deliver a ghost town which is not a god thing for a developer for his subsequent project. Second thing is that an investor is a fair weather friend and the day he is not making money he will be harsh to the developer and talk about him in the circle that matters. That is enough to damage the reputation of the developer.