The combined effect of RERA and demonetization seems to be finally showing its results. A recent report hints that fly-by-night smaller developers are now slowly existing from the real estate market which is now dominated with big brands.
As per property consultant ANAROCK, real estate developers, those with high-recall value and those who have been operating in the sector for a decade, have accounted for 56 percent share of total housing supply of 1, 95, 300 units in 2018.
The figures come as a contrast to the ones of 2015 when big, branded developers accounted for only 41 percent of the total supply and the market was dominated by unbranded smaller and local-level developers.
With hundreds of projects being stuck across the country especially in Delhi-NCR, Mumbai-MMR and Bengaluru, the homebuyers today are more cautious and are anyway staying away from smaller, lesser-known developers. Even if there is a price difference, the buyers’ are evidently more inclined towards established developers than a smaller and may be unreliable one.
“The Indian consumer’s quest for branded products spans almost all products from fashion, gadgets, cosmetics and toiletries – and now even homes,” Money Control quoted Prashant Thakur, Director & Head – Research, ANAROCK, as saying.
Thakur further added that India is among top three most brand conscious nations globally.
Branded real estate players too are opening their offerings and are ready to venture into newer segments. The luxury players are seen spreading across high-demand market of affordable and mid-segment.
Such developers undoubtedly have better capital and other financial and technical capabilities to finish and deliver a project on time. They are known for conducting complete research on the location before entering the market and thus know the requirement, demand and growth corridor of the region.
Low sales and stuck projects have either completely bankrupted the smaller brokers or have driven them for consolidation with larger organized players.