MUMBAI, 11 DECEMBER; 2015: Media reports and statistics suggest that property seekers have started buying – and this augurs well for the real estate scenario in Mumbai and the Mumbai Metropolitan Region (MMR). “In the last two-three months, enquiries have gone up and closures have gone up in the last one month,” said Niranjan Hiranandani, Managing Director, Hiranandani Communities and Founder – First President (Maharashtra), National Real Estate Development Council (NAREDCO). “Commercial real estate is doing well, and residential real estate is also showing signs of traction where actual sales are concerned,” he added.
Niranjan Hiranandani pointed out his sales teams across locations in the MMR including Thane and Panvel, have reported good transactions over the past few weeks. Explaining this situation, Niranjan Hiranandani attributed it to realty being ‘back in favor’ when viewed from a ‘returns on investment’ perspective. “People are tired of stock markets (to give them better returns) and realizing property markets give better returns in the long run,” he explained. But it is not just investors; actual users have stopped being ‘fence sitters’ too. The increase in residential real estate sales can be attributed to fence-sitters having realized that a price correction of sorts has already happened. Consider that capital values have not gone up in the last two-three years despite annual inflation of five per cent to eight per cent. This has led to many having started making ‘buy’ decisions,” said Niranjan Hiranandani.
Adding to these ‘positives’ was the Union Cabinet, which on 09 December 2015, approved the Real Estate (Regulation and Development) Bill, 2015. “Once it is passed by Parliament, will help in creating a more consumer friendly, transparent and accountable real estate sector,” said Niranjan Hiranandani. “Regulation will enhance credibility of the real estate sector as also the confidence-level of consumers by promoting transparency and accountability. It will encourage orderly growth through efficient execution of projects, professionalism and standardization,” he said. “I expect ‘positive sentiment’ as the reaction of home seekers, “added Niranjan Hiranandani.
Over the past months, it has been a scenario where home buyers have been in a ‘wait and watch’ mode; effectively many had deferred their home buying. “The repo rate reductions by the RBI – a total of 125 BPS across the year – were perfect to bring about a change in home seekers’ perception, and the RBI Governor’s nudge to banks and HFCs to pass on benefits of the rate cut to home buyers comes just in time with the festive season. I am sure it will have a positive impact on the realty market sentiment,” he added.
“It is a good move, and I am sure banks and home finance institutions will pass on the benefit to home buyers – who will take advantage of the positive sentiments and buy. Property seekers have stopped being ‘fence sitters’, this definitely augurs well for the real estate scenario this festive season,” he concluded.
Niranjan Hiranandani is Managing Director, Hiranandani Communities and Founder – First President (Maharashtra), National Real Estate Development Council (NAREDCO).