India-Forums.TV

[aryan]

Summer spells a lull for the real estate sector as transaction volumes take a downward plunge. The trend is clear considering that estate project launches have been the least during the second quarter from April 1 to June 30. As many as 46,093 high rise apartments were launched between January 2005 till December 2010. Of these, the highest launches were during the third quarter (July to September) when over 41% highrise homes were launched in the city. In contrast, the lowest launches came in the second quarter when the launch of only 5,448 apartments (11.82 %) were announced.

When asked why home buyers defer purchases, real estate analysts blame it on the scorching heat and summer vacations. “It is true that transaction volumes are lesser during the summer months. This is a time when the weather is not encouraging for buyers. Moreover, since summer vacations are the longest, many families leave town to beat the heat. People wait for the Navratras and Diwali (which falling in the third and fourth quarters respectively) as they consider this time to be auspicious,” said Santosh Kumar CEO (operations), Jones Lang LaSalle, India.

Despite figures indicating a clear trend, builders are hesitant to acknowledge the fact. Ravi Saund head (business development) of CHD Developers, said, “As the weather is severe, many people feel this is not an appropriate time to shift into a new home. Also, since children are already into their new academic year, parents do not want to make a change. Also, customers prefer not to venture out to look at property in such weather.”

According to the launch figures, the next highest number of launches of 13,814 apartments comes in the first quarter. Also, over 16 % launches were seen in the last quarter from October to December. “The phase from January to March is the time for financial closures and, hence, it boosts transaction volumes. On the other hand, the winter months see a large influx of non-resident Indians arriving back in India to visit relatives. The transaction volumes at this time (winter months) are mainly due to NRI purchases,” said Dr Sanjay Sharma, MD, QuBREX.