The changing tides of realty and how you can surf happily into 2017.
The changing tides of realty and how you can surf happily into 2017
Cheaper loan interest rates, e-collaborations, and other key developments will usher in positive changes in the realty scenario in 2017, predict experts
Shift in buyer sentiment
The demonetization phenomenon has passed its epicenter as the market continues to reel from the disruptive changes triggered by the introduction of RERA. As myths, rumors and hearsay continue to be quelled, buyers are gaining more confidence to reenter the fray. The introduction of attractive schemes, along with the reduction in home loan interest rates, is expected to help home seekers in making the purchase decisions. The sentiment-driven nature of consumer impulse is gradually returning to a rationally-minded approach.
Impact on primary and secondary markets
The primary market, contrary to popular belief, has not suffered from the supposed hardships of the rumoured decline. The sector, consisting of ready-to-move homes and new projects, caters to end-users whose primary sources of funding are banks and other financial institutions. This gives the buyers immunity in a cash-strapped economy. It was not expected to be affected, barring the miscommunication caused by the post-announcement delirium. Serious buyers are already returning to the primary markets, signaling the onset of a recovery phase.
The secondary market did, to a great extent, bear the brunt of demonetization. With scarcity of cash, large number of buyers went off the grid, forcing the sellers into a stalemate. This will also result in the reduction of prices, thereby benefitting buyers. However, the pricing reduction might take a while, and its cumulative impact remains unpredictable.
The growing potential of online realty market spaces
Ecommerce is evolving rapidly and proving to be a major disruptor of traditional marketplaces. In November 2015, India’s internet user base was around 402 million – today, it stands at just over 462 million. The potent force that the Internet is cannot be ignored, and major real estate establishments are exploring it to the optimum, and have astonishing results to brag about. E-collaborations are lending the competitive edge to realty developers in a cut-throat market scape.
Source: JLLR, figures as of January 14, 2017
The phenomenal growth trajectory of JLL India’s Residential Services division, by a staggering 60% in 2016 over 2015, illustrates the growth potential in a market space that has largely considered lackluster.
The value of e-collaboration
Strategic coupes have headlined the success stories of 2016, and already, 2017 seems like a year in which the momentum will be carried forward. One of the most notable ones was struck between the country’s premier International Property Consultancy JLL India’s Residential Services’ division and India’s largest online marketplace to market residential real estate in India. The partnership seeks to augment the combined strength of Snapdeal’s deep penetration into the Indian online consumer market and JLL India’s expertise in residential real estate marketing. With this move, the company continues to maintain its status quo as the leader in the industry. The end-to-end buyer-seller process alignment will help cut through the red tape, enabling smoother transactions and resulting in a greater number of happy buyers.
Source: Blog JLL Residential
All in all, 2017 will witness a paradigm shift in buying patterns, with pleasant surprises in store for entry level and mid-range home buyers. Visit www.namratagroup.com to choose from a plethora of residential projects in vicinity of a rapidly-growing Pune.