Real estate demand in the residential vertical has been badly hit due to high prices and poor affordability.
Buyers Sentiment in Realty:
Buyers are shying away from new projects or under construction projects, where project delivery is more than a year away. This is because – buyers are optimistic that prices have to correct further in the near term, and they lack confidence in the developers and the developers’ ability / intention to construct and deliver the project on time.
Reality of Indian Realty List Prices:
The list prices quoted by developers for under construction projects have little meaning today as no few deals are concluded at the official list prices. Deals are happening at 30-50% discount to list prices. However, developers are not officially lowering list prices, as they believe that taking such measures may not necessarily result in any incremental demand from home buyers, but developer himself will be impacted due to the negative outlook on prices and weak sentiments.
Standard Chartered – BKC Deal which happened at a 30% discount to the last deal reported in Bandra Kurla complex has led to re-negotiation of lease rentals / rates in the Commercial property segment across India.