Largest property developers will continue to face a challenging operating environment over the next 12 months including weak cash flows, flat sales and stagnant prices; * expect solid economic growth in India in 2014-15 to provide some support to housing sales, while the likely gradual easing of lending rates will also boost investor confidence and investment activity; * high home prices and declines in savings rates will outweigh these factors, particularly in Mumbai and Delhi
Rising inventory levels in Bengaluru has been highlighted before. While job market has been robust in the region, improvement in IT hiring and continuation of E-commerce led job market boom will remain key monitorables for the region’s performance going forward.
Strapped for cash and struggling to find buyers, developers are offloading apartments in scores. And taking advantage of the situation, private equity (PE) funds and even high networth individuals are driving a hard bargain. Real estate firms, sitting on large inventories, find they have little choice but to offer deep discounts — anywhere between 20% and 40% — as they need cash to complete projects. Gaurav Gupta, director, Omkar Realtors and Developers, confirms he is offering discounts for bulk deals explaining that off-loading apartments. Kolkata’s Forum Project Holdings too has done a bulk sale to Piramal at its BKC project.
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