The real estate industry is expected to reach US $180 billion by 2020, said analysts and industry experts at a seminar organised in the city.
As part of the Management Development programme, the students of the Acharya Bangalore B School attended a three-day seminar on Real Estate Management that started on Thursday.
Realtors and analysts from the field also attended the seminar to provide the students with future prospects and various professional options.
Presenting a paper on ‘Internet and Real Estate’, Business Head of 99Acres.com, Vineet Singh said, “As per reports by real estate intelligence firms, India is ranked as the fifth most attractive destination for future real estate investments in a list topped by China. The Indian real estate industry is expected to reach US $180 billion by 2020. This is a good platform to involve both academia and industry to facilitate dual growth and understanding. We get to know what the emerging new talent holds and they learn about the industry perspective.”
Industry experts from Brigade Group, Sobha Developers and other leading real estate organisations attended the event to train the students. “I’ve always had an interest in this industry as my family deals with real estate. But at this seminar I could ask a few basic questions and get industry relevant answers,” said Niharika Singh, a student.
The monsoon is usually considered as a lean season in terms of sales for the developers. It’s not just the weather that affects the purchase of property, but also because it is considered inauspicious to buy anything for about two weeks during this period (because of shraadh or pitrapaksh). Buyers prefer to wait till the festival season to buy real estate. So, in order to increase sales, developers are willing to offer ‘monsoon discounts’.
Many people postpone buying a house during these months. This adds to the existing inventory of the real estate developer. The builder, on their part, wants to get relieved from it so he can start a new project in the upcoming festival season. Also, they would need some liquid cash in hand for the new projects.
While only a handful of developers advertise it as a ‘monsoon discount’, most are willing to offer lower rates to serious buyers. The significant of discount varies for different cities, depending on how badly it is affected by the monsoon. So, in Mumbai and Kolkata the quantum of discount is likely to be higher than that in Delhi and Chennai. In Mumbai, a buyer can expect discounts ranging from 10-20%, a Mumbai-based real estate marketing company.
Besides the entice of discounted property prices, buyers can also avail of the monsoon special offers on home loans by banks.
Since the demand of commercial real estate is increasing due to the increase in retail activity, Sheth Developers, a property firm tied up approximately half the space at its upcoming 1 million sq ft mall in India’s financial capital.
Sheth developers are Mumbai based developers. They have lined up retailers Hypercity and Shopper’s Stop. Also Cinepolis, which is a Mexico-based multiplex chain, is lined up as tenants for the ‘Vivacity’ mall at Thane which is currently under-construction. All this information was gathered by some reporters on Monday from the vice-president for marketing & leasing of Sheth developers.
He also admitted that although the firm had slowed down construction work due to the market slump, they are now back into operation since their leasing team is getting tremendous response now.
This mall has a total of 670,000 sq ft area as the saleable area and it scheduled to start operations by August 2011.