Real Estate Market turn-around : Slow but sure

CityscapeCityscape India 09 is the first major B2B real estate exhibition to be held here after the recession.  FY 08 was a particularly trying time for the industry. The last few months have definitely seen the signs of recovery. This was apparent on the floor of the Cityscape India Exhibition over three days. Developers, designers & architects promoting new projects & services saw this as an ideal platform to not only build their brand but also look for potential investors & JV partners.

Commenting on the year ahead for the industry, Mr. Brotin Banerjee, CEO & MD Tata Housing Development Company said, “Real Estate worldwide had been impacted adversely, so is the case in India. Prices had come down by 15-20% over the last nine months even affecting the volume of transactions which also reduced to an all time low. However, with the recent recovery we are witnessing, we believe that the next financial year would witness the real estate developers being very agile, innovative and cost conscious. Developers would have to work harder to win over consumers, change their product to suit the budget of consumers and the brand must be very strong to give the necessary comfort and confidence to a jittery consumer market at large.”

Nevertheless the market is showing definite signs of recovery and developers and the other players in the industry, in India are putting their best foot forward and participating in conferences, exhibitions and seminars to network and absorb the best opportunities available.

Mr. Nikhil Mansukhani ,Director,  MAN Infraprojects Ltd said, “Cityscape being a Business to Business forum, has given us a chance to be present among global players in the construction assemblage. Being part of such events, not only gives us global recognition but also an arena to associate with international architects, landscape designer and model makers to name a few. It’s too early to depict any outcome from this business forum but in time I see a national name in the global market.”

The real estate fraternity is looking at new and innovative business models, which are easy to adapt in the current market conditions. At the same time the industry is learning and re-inventing itself to sustain the challenges in the coming years.

Mr. Aman Sharma from the Mighty Group a Mumbai based developer said, “Though the exhibition this year was not as vibrant as the one in 2007 we were able to see some futuristic trends like Affordable Housing, Green Buildings the industry should keep in mind. The next financial year will see the revival of the real estate sector in all parts of the country.”

Mr. Graham Wood, Group Director, Cityscape said, “We have canvassed industry opinion from all asset classes during Cityscape India this week. The real estate sector is beginning to show several signs of improved market conditions. Affordable housing continues to lead the way in many discussions. The majority of investors and consultants believe that the leading sector, residential, will see prices increase in the next 6 months. SEZs and Industrial/warehousing are widely regarded as the least preferential investment vehicles currently. Although an immature market, India is displaying a resilience not witnessed in other emerging markets. As we move into 2010, real estate will turn the corner in India as investors return and FDI increases. We believe the next 12-18 months will see a very dynamic and exciting period for the whole industry; in particular Mumbai, Delhi, Bangalore, Hyderabad, Pune, Chennai and Calcutta.”

Summing up the main objective of Cityscape India Exhibition Mr. Surendra Hiranandani the Founder & Managing Director of Hiranandani Construction  (P) Ltd addressed the panel discussion on ‘Recreating Indian Cities : Creating Blueprints For Urban Changes In India by adding, “ Urbanisation is the need of the hour for the country, we need to focus on organising seminars, exhibitions & conferences like this to provide a platform for people to come together, discuss & share their views and create a consensus, on the way forward.”

Platinum partner of Cityscape India is Al Madina A’Zarqa, a 32 square kilometre development in Oman. Gold partner is Stars Dome Realty, a real estate company specialising in residential, commercial and retail properties across the United Arab Emirates. Silver partner is Bwi:Neilsoft, a partnership providing planning and design services for sustainable master plan projects in India.

Supporters of Cityscape India include: the International Real Estate Federation; the Royal Institute of Chartered Surveyors; the Asian Public Real Estate Association; IDS-NIREM; the National Real Estate Development Council; and the National Association of Realtors in India.





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