Bombay real estate

KUALA LUMPUR (Aug 27): To allay buyers’ fears of completion delays, India’s real estate developers must exhibit construction progress, said Jones Lang Lasalle (JLL) India assistant vice-president for research and real estate intelligence service Suvishesh Valsan.

This is to help restore consumer confidence in India’s real estate, which is vital to supporting property sales which has been flagging since 1Q2013.

“About 27% of the units are sold when they are near completion,” he said in JLL’s India Real Estate Compass blog.

“The passing of the law in Real Estate (Regulatory) and Land Acquisition Bill will increase market transparency and improve consumer confidence in real estate,” added Suvishesh.

The sales for residential units have been declining since the past two years, especially in the initial quarters, said Suvishesh.

“The number of units that are sold from both new and old projects every quarter form the sales rate, and from 14% in 1Q13 this has steadily declined to below 9% as of mid-2015, thereafter remaining stable at low levels.

 “This [declining] trend has been witnessed across the seven leading metros and the situation is particularly grim in markets such as Delhi New Capital Region (NCR), where the sales rate has declined by 10%,” said Suvishesh.

“Despite a big fall in Pune, Hyderabad and Kolkata, the sales rates of these cities still remain in double-digits at 12% to 13%. Mumbai’s fall was moderate, owing to low sales rate throughout the said period,” he added.

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