STORM IN THE MARKET OR A TEACUP?

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Nobody can say with final authorityas to what type of realty project or projects will make a dent in the market,says Vivek Shukla   Day: Sunday.Place: Greater Noida Expressway. Time: 2pm. On the way from Delhi to GreaterNoida on any Saturday or Sunday, you would find tents of realtors. Staffers ofrealty companies sit inside these makeshift tents, and there is a huge astretch of land behind the tents. Naturally, the staffers of realty firms waitfor their prospective customers.   However, whatstrikes any passerby is that in most such tents, either there is nobody or onlya few people enquiring about the details of the projects. Given the fact thatrealty market is reviving after realtors slashed the cost of flats, floorsand plots, the above scene looks a little confusing. The pertinent questionthat arises is whether customers are avoiding projects where construction workhas not started at all. The jury is still out on this issue, but some expertson realty matters admit that unlike in the past the new-age customer is verysmart and he/she ensures that their investment does not create headache forhim/her later. Hence, they thoroughly check the background of realty firmsbefore taking the final call. They even inspect past projects of builders,whose current projects are of interest to them.   If there iseven an iota of truth in the argument that prospective customers prefer to booktheir house in only ongoing projects , where they can see some flurry ofactivity, then DLF’s Capital Green project in Phase-II is an exception. Bookingfor the project was commenced on September 22 and on the very first day, overthree thousand people made their bookings with earnest money — and for 1250flats on offer, bookings were three times the figure. This is enough to provethat realty market is improving, even if it is not on fire.   However,Sunil Jindal, CEO of SVP group, has a different take on this matter. “I cantell you from my own experience that more often than not, customers invest inthose properties where they find some kind of activity. If they see that workis on, then they invest. I have observed this tendency among customers in ourmany projects. Let alone the projects of big-time realty firms, selling flat,floor or plot on barren land is not at all an easy task. Selling dream is notpossible nowadays as media has exposed the handiwork of a large number ofrealty firms in cornering huge sums from people after promising the moon,”Jindal says.   R K Arora,CMD of Supertech Limited , takes a different line and saysthat it is not right to say customers prefer to book their dream houses onlywhen they see some kind of construction work in progress. “If that is the casethen all the realty firms will start their projects and easily sell theirproducts. However, the world of realty does not work that way. Fact of thematter is, nobody knows which project can kick up a storm in the market andwhich one will fall flat.”   Meanwhile,Anu Gupta, director of realty advisory Century 21, says it is a huge task toread the mindset of any particular customer. Of course, some prefer to booktheir houses where construction work is on. That gives them a huge a sense ofconfidence. However, the image of some realty firms too counts. “It goes without sayingthat the image of realty firms like Unitech, Hiranandani, Jaypee, DLF andothers have stood the test of time owing to many years of their solid work.Naturally, a large number of discerning customers consider this fact also.Hence, when such companies launch their projects, people go and book theirflats and floors there,” Gupta says. Sharing his views, Rajeev Rai,vicepresident of Assotech, says the relationship shared between customers andan established brand is very important as no buyer is willing to compromise onthe functionality and quality of the real estate product.   “In the lightof this fact I can say the brand value of the developer affects the buyingdecision of customers. The popularity of a brand results in optimum sales andincreased consumer awareness, which is independent of the construction statusof that project.” East Delhi based businessman Sandeep Wahal belongs to thatcategory of customers who have booked flats in that builder’s project whopromised construction-linked payment plan. That is why he decided to book aflat constructed by a fairly well-known company in Gurgaon. At the end of theday, one thing is absolutely clear that nobody can say with final authority asto what type of realty project or projects will make a dent in the market.   Courtesy:-TOI dt:- 17-10-09                    

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