Home buyers tendency in the current market scenario is to adopt a wait and watch policy as they expect prices and interest rates to come down further amid real estate sector across India showing signs of revival. The demand for the end-user home buyers is restricted to affordable segments with certain micro-markets showing growth in sales and launches.
“The expectations of better prices and lower interest rates have made a lot of buyers put their purchase decisions on hold. Interestingly, the Reserve Bank of India has made several cuts in the repo rate (which affects the interest rate on loans) in the past 18-20 months, with the expectation to boost liquidity however that has not impacted the end user consumers’ decision,” Shveta Jain, managing director, residential services, India, Cushman & Wakefield said.
Delhi-NCR region which has emerged as the worst among the real estate markets saw fewer launches in the first half of 2016 with new launches restricting to a total of 7,614 units posting a 22 per cent decline compared to same period last year, according to Cushman & Wakefield first half yearly report. Of the total launches over 70 per cent were in Gurgaon in the region of Sohna that will see the advent of approximately 2100 units in the next 3- 5 years, making Gurgaon (Sohna, Golf Course Extension Road and Dwarka Expressway) to be a potential region for people to invest in.
The only category that witnessed an increase in supply in Delhi-NCR is the mid-segment at 4,229 units, a marginal increase of 11 per cent compared to H1 2015, while affordable segment saw a fall by 44 per cent at close to 3000 units as compared to the launches in the same time last year.
Jain added further that developers are making several attempts to attract buyers in the form of attractive payment schemes and freebies. Exiting at the expected rates from invested projects has also been extremely challenging for home buyers on lack of satisfactory infrastructure development in several areas to support the end use of residential projects. “This has further discouraged fresh investments in projects in Delhi NCR,” Jain added.