From the Desk of Ajai A Kapoor
Realty Developments in 2015 – and how they will define 2016 for us.
6:00 AMRealty Developments in 2015 – and how they will define 2016 for us.
Wishing every one a very happy new year!
After a
rather dull and lacklustre 2015, we all have a lot of hopes from 2016. 2+0+1+6
adds up to 9, which is considered a very powerful and lucky number in the real
estate fraternity – so we all hope that this year would help revive and uplift
the market sentiment and the demand in particular.
Although
there has been no reduction in rates by most developers in 2015, transactions
in most cases are happening with a negotiation of 10-15 per cent, when a customer sits across the table with the seller or
developer. This is especially true in the mid to large ticket size transactions
of Rs. 3cr and above, though may reduce in the small ticket size transactions
of Rs. 1-3 cr. Most developers are selling their products bundled with a number
of schemes and freebies, to be able to push sales across the spectrum – which
has helped them gain some traction in sales of their products – however a very few of them have actually reduced
rates on their products, which is probably what the buyer has been waiting
for. While no one knows when the market sentiments and sales will really pick
up, most feel that it should be in about 6 months to one year as echoed here by Pirojsha
Godrej, MD Godrej Properties.
The coming year will see a number of important changes
and new rules which will change the market scape to some extent. Here, we would
like to highlight some of the important changes and their after-effects, which you
can expect to see in 2016:
RERA
(Real Estate Regulation Act): is a new Act passed by the Government to set up a housing
regulatory body, to safeguard the interests of home-buyers. This will help
monitor and regulate the developer fraternity and help protect investors and
buyers from losing hard-earned money invested in projects being developed by
developers. RERA also requires real estate brokers to get licensed to be able
work with developers and sell their projects. This new Act is expected to be
‘game changer’ and will redefine the way projects are sold to investors and
end-users. To know more about how it would benefit buyers, you could read up
some articles on our Blog on the same.

New DP Plan 2034: The new DP Plan 2034 will be passed in 2016 once it goes
through through the procedures of approval from the public at large and the
Government. This will define the way for development for the next few years and
give the developers a vision and path for their next projects. We expect this
to be a strong basis on which the development for the next few years will get
planned upon.

We expect to see some more consolidation in the online
space in 2016 resulting in the formation of a fewer, but larger ‘online property
giants’.
The above changes and trends should
give you some visibility of 2016.
- by Ajai A Kapoor
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