The sale of real estate in the east, which is mostly an end-user market, has been down the last few months owing to inflation and a hike in raw material prices. Rates, which were high, are now stable and will continue to remain so for a few more months, according to Subesh Roy, senior vice president of Mani Group.
“The investing community is not responding to the present economic downturn. All the sales are necessity driven,” Roy told FE.
“However, the city will witness a lot of real estate projects being sold off to big international real estate firms in the next six months, as sales have gone down considerably, affecting real estate developers here. So some city developers are keen on selling off their projects.”
Roy said mostly members of the lower- or middle-income groups will now buy properties, but higher-income-group people are the worst hit as they are not keen on buying.
He said international buyers would be coming to invest in the city through international property consultants and would buy mostly commercial and high-income-group residential projects.
Pioneer Group CEO Jitendra Khaitan told FE, “Prices are not very appreciative in the east, so it consists mainly of the end-user market. Now, owing to the price hike, sales are less but rates are stable. The money market is tight and there is a dearth of liquidity, so we are selling fewer apartments.”
On city real estate projects on the verge of being sold off to international real estate majors, Khaitan said: “This is not true.”
PS Group chairman and managing director Pradeep Chopra said, “Sales are highest in the east from just after Diwali to March 31. Many non-resident Indians purchase property during the period, which is thought to be auspicious for such purchases.”
He is quite optimistic about the sale of properties and hopes it will increase next year. “Total sales in the state last year were Rs 5,000-6,000 crore, and is expected to go up to Rs 7,000 crore next year.”
Mani Group, Pioneer Group and PS Group are city-based developers.