Residential Property to Play a Major Role in Revival of Real Estate Sector

Published: January 18, 2010

As the year 2010 begins , it is heartening to note that homebuyers are taking the lead in reviving the realty market.

Looking forward, it is almost certain that the residential sector will continue to play a major role in shaping future growth in the sector. For homebuyers, this also means that developers are going out of their way to woo customers , with projects to suit different tastes and budgets.

Talking about the phenomenon , Kaustuv Roy, executive director, India, Cushman and Wakefield, the international property consultants says, “Post meltdown, the residential sector has been the fastest to recover with stabilisation of prices being the major factor. The oversupply percentage was lower compared to other sectors, where estimates were much higher than the actual demand.”

A similar note was struck by Anuj Puri, country head, Jones Lang LaSalle Meghraj. In a December 2009 report by Cityscape Intelligence, he says, “Although many large retailers are back in the market and pursuing growth cautiously , it is the residential sector which is undoubtedly the revival king, striking a high note over the last one and-a-half quarters, with pent-up demands bubbling over into hardcore sales and committed enquiries. The residential revival is by far most sustainable.”

The actual players in the market, the developers , also feel the same. Jayant Gehi, general manager , Mayfair Housing says, “I couldn’t agree more the residential sector will lead this has already started, as in the last six months major consumers came from this segment .

Although recently we have seen signs of revival in the commercial and retail sector too, at the helm of it all, residential spaces would find the greatest number of buyers . India needs too many homes and there are too few at the moment. Supply would increase as the government and banks are taking interest in augmenting the sector .”

Manju Yagnik, vice-chairperson , Nahar Group, adds, “Banks are supporting residential projects with loans and tieups. In fact the commercial projects are kept under lock and key as they were made for IT and foreign companies , which have put their plans to enter India on hold since recession.” Brotin Banerjee, CEO and MD, Tata Housing, says, “The Indian residential market has certainly been leading the way to recovery.”

Source: Economic Times

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