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The real estate market was not able to fully harness the benefits of market recovery during the festive season, according to a top executive of global consultancy firm Jones Lang LaSalle. While the Indian real estate market is seen to be on a recovery mode, the festive season was not able to spur the market recovery.
Gradual recoveryHe further stated the current market recovery will become visible over the next twelve months.
This is because the events that have catalysed the recovery, such as a new Government at the Centre, its pro-business policies, the encouraging Union Budget and the provisions it has announced favouring real estate, will need more time to bring their benefits to have a bearing on the market, according to Anuj Puri, Chairman and Country Head, JLL India.
With the RBI holding on to current interest rates to safeguard against further inflationary trends, it will take several more months for the market to get into a forward momentum again.
The festive season did not bring the kind of momentum that was hoped for, he felt. According to Puri, while demand exists, it is still held in abeyance by various economic factors, including the natural lag between announcement and implementation of Government policy catalysts.
Pre-election gambleReduced pricing could potentially induce further sales momentum in certain pockets, but it is not likely to happen as developers are not keen on signalling a correction, especially when demand is waiting in the wings.
Prior to the general elections, developers had launched many projects in anticipation of a recovery in market conditions after the polls. However, the launches did not really pick up post elections, as residential property buyers continued to remain cautious.
The sales during this festive season have remained uninspiring despite attractive pricing schemes and discounts that developers have been offering to attract buyers. However, Puri stated the current scenario is no way indicative of what lies ahead for the real estate market, for which the outlook remains very much positive.
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