Buyers go for affordability and livability

At the peak of the real estate boom, it wasn't uncommon for almost every locality in different cities to witness a bullish phase. However, with  m arkets slowing down and investors giving way to end-users, real estate locations are now increasingly being preferred for value-adds in terms of livability and affordability. The year 2009 was one of wild mood swings in buyer temperament. So the rationale that evolved by end 2009 is likely to dominate the mood in 2010 as well.  

Brix Research, in its recently launched Real Estate Value Analysis Reports, Issue 3, surveyed various locations across cities to assess market trends in 2010. The survey found that the consumer had become more realistic in terms of the type of housing he can afford. But localities did not often offer the type of houses in the range that consumers were looking for. In other words, demand and supply did not match consumer expectations.  

Says Anil Kumar, CEO & deputy MD, Ansal API, “The year 2010 will easily be the year of the end-user. The demand for residential will see good growth as both the economy as well as the job markets have stabilised. The uncertainty phase is over and people are now more confident to make investments. But this growth will mostly be in the affordable segment where the bulk demand lies.”  

The demand for 1 BHK multi-storey apartments of about 850 sq ft in the price range of Rs 5-50 lakh were concentrated in Mira Road, Malad West, Kandivali West, Dahisar West, and Andheri West. In newer developing areas such as Kharghar, CBD Belapur, Nerul, Seawoods, Kamothe, Koper Khairane, Vashi, Palm Beach , Sanpada and Belapur, buyers sought multi-storey apartments and residential houses in the Rs 5 lakh to Rs 1.2 crore price range.   Demand is often led by factors such as transport links.

Other top localities of Thane with good residential demand include Thane West, Ghodbander Road , Manpada, Hiranandani Road , Kolshet Road , Pokhran Road and Thane Road .  

Venu Gopal, associate director, Ernst & Young, feels that peripheral allocations across different cities hold promise both in terms of affordability and price appreciation.

Overall, the residential segment is poised for appreciable growth in 2010 as potential buyers realise that the prices are stable, and hence the next 2–3 quarters is the right time to buy.

Clearly, the residential real estate segment is expected to throw up better demand statistics in 2010. Harinder Dhillon, VP, marketing, Raheja Developers sums it up saying that the recovery in the second half of 2009 has been largely marked by demand driven by end users. “This trend will gain momentum in 2010 & investors will be back in a major way, giving a further fillip to the market.”

Source: The Economic Times dated January 3, 2010