Introduction • Since last 5 years, India is seen as a land of opportunity for investment and opportunity. • Real estate being the major sector for investment there has been lot of potential for high ROI for investors and developers as well. • For Indian real estate sector 2015 was not a perfect year that investors and builders wanted it to be. Growth was low and returns were all time low. • However, bad days don’t last long, those days are over now, as sales have picked up pretty fast in cities like Hyderabad, Chennai and Bangalore. • There are many initiatives like offering attractive schemes, lowering off interest rates by Reserve Bank of India (RBI) which has helped real estate sector get back to its track.
Insight • There is going to be a drop of new launches in this year, this will increase the price of the properties as the piled up inventories will be used and there would be more of demand than of supply. • There was a drop in 62% in the year 2015 for the new property launches, this shows that the developers are very cautious about investing in new property and keeping a close tab on the piled up inventories. • One of the leading real estate companies, Radiance Realty, is also having only few but premium projects in their pipeline for Chennai. • Though there was a decrease in new launches there was a rise in number of sales deed this year. • This has helped the real estate builders to sell their piled up inventories, facilitating an upward correction in the market. • According to market study, new units launched in the year 2015-16 were 8601 and units sold were around 20,484.
Insight • The Chennai real estate market started reviving after Chennai floods. • The market was struck by this calamity and was suffering for a short period of time, but now people have started moving forward. • Sanjay Chugh, national head-mandated sales & business head-Chennai, residential services said that the Chennai real estate market has seen more customer enquiries and walk-ins during the second half of January and February. • During an interview with Radiance Realty MD Varun Manian, he was asked about the current real estate scenario and the difficult marker situation. • He replied “There will always be a demand for housing, there will always be customers for quality, for transparency and for timely delivery. I do not believe that there are any difficult markets. I believe that there are changes in markets and that we have to change alongside. We at Radiance we are all about quality and delivery. We are all about caring for the customer. And our customers reciprocate this. They trust us, they care for us and they buy from us.”