‘General Elections may impair home buying decision in 2019’

Anil Urs Bengaluru | Updated on December 28, 2018 Published on December 28, 2018

Representative image   -  Getty Images/iStockphoto

In 2018, mid-income and affordable housing drew a lot of interest

M Murali, Chairman and Managing Director of Shriram properties, said that the General Elections in 2019 may impair the decision making process of a small section of home buyers till May-June 2019. He explained that this would happen eventhough they were no longer in the mood to ‘wait and watch’.

“Another key factor which will impact the realty sector in 2019 will be the rise of new age home buyers. Understanding this opportunity, real estate players today are coming forth with new concepts of projects like integrated living,” he added.

“This is supported by the changing buyer preferences, which is altering the landscape of the real estate market. As cities become more crowded, developers are looking at evolving areas in a way that customers would love to live in it. This has led to an optimal usage of a given area in a congested city to provide home buyers with a sense of exclusivity,” explained Murali.

Talking about 2018, Murali said, “In 2018, mid-income and affordable housing drew a lot of interest and accounted for 65-70 per cent of the demand. Projects nearing completion and ready-to-move-in apartments also saw better traction this year. In addition, Government schemes announced in 2017-18 such as ‘housing for all’ served as an accelerator to the sector, particularly for mid -market and affordable housing categories.”

The real estate industry had its own share of turbulence in the form of the Non-Banking Financial Companies (NBFC) crisis and the consequent liquidity crunch faced by some of the marginal developers.

“This also includes the reluctance of commercial banks towards incremental lending and the increase in the interest rates. On the other hand, execution capabilities, financial strength and ability of the developers determined their prospects and performance during the year 2018, thereby, proving that only strong developers can thrive over the long term,” Murali said.

Published on December 28, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.