IT professionals employed at various software companies in the famous Old Mahabalipuram Road here continue to form the major chunk of realty buyers, according to realtor firm ‘House of Hiranandani.’ “We have seen demand from the younger generation employed at IT companies on the Old Mahabalipuram Road (OMR)”, House of Hiranandhani Chairman and Managing Director Surendra Hiranandani said.
“The buyers look at it from an investment perspective since it will give them good yields as there is a high demand for such units”, he told PTI.
Stating that these buyers largely prefer one bedroom houses, he said “units of two and three bedroom houses are preferred by corporates and families”.
“Villas (houses) have demand from senior executives and professionals who can afford the extra maintenance of a larger home and a private garden”, he said.
“OMR being the growth corridor of the city attracts a varied clientele. But largely the demand comes from IT professionals who work on the stretch and want to stay near their workplace”, Surendra Hiranandani said.
He said integrated communities with a mix of retail and residential developments are expected to be the next popular trend in the city.
“With the rise in safety concerns today, the integrated communities with a presence of both retail and residential developments will see a major traction”, he said.
Referring to the demonetisation announced by the Centre last year, he said the primary residential market and projects undertaken by credible and reputed builders have not been affected as transactions were financed through legal channels.
A large segment of buyers opt for home loans from banks and finance institutions, he said.
However, realty projects in Tier II and III cities where cash component was significant “had a negative impact post demonetisation”, he said.
On the outlook for the realty sector in South, he said “we expect South India, particularly Chennai and Bengaluru, to do well in the coming year”.
“The steady demand for residential real estate from the IT sector and implementation of various infrastructure initiatives will be among the key reasons for higher demand here”, he said.
On the Real Estate Regulation and Development Act, he said while it would safeguard the interests of buyers, it does not address the concerns of the developers.
“To the buyers, it safeguards their interests, brings transparency, ensures accountability and timely completion of projects. Unfortunately, RERA does not address the concerns of the developers,thereby not providing a level playing field for all stakeholders” he said.
“The Act does not bring the government authorities into the ambit who are responsible for continuous changes in regulations, lack of transparency and predictability in functioning”, he said.
“We believe lack of clarity on the various mechanisms proposed will only add to costs through delay, making projects more expensive”, he said.
It is “unfair” to genuine developers as most delays usually happen due to lack of approvals. It will further dissuade any new entrants from venturing into the sector, he said.