RICS Real Estate Conference on 15th Nov 2017
Introduction
The industry leaders during the RICS Real Estate Conference on 15th Nov 2017 shared that the industry is in “phase of cleaning up”. Here are some key takeaways from the conferenceDevelopers will now sell by “carpet area” rather than the pre-RERA practice of quoting super built-up area.
The business models would focus on ensuring the already started or completed projects. They are sold first which would mean that most buyers will be able to see what they are buying.
Till last year the thurst was always on pre launches and using the funds collected for other projects or scale up already started projects.
Hence might have to use automation there by leading to increased cost of construction. However, this would definitely have a positive impact on the quality of construction.
Conclusion
Post demonitization, sales dropped 36 per cent in India’s top 10 cities on average as per the data from PropEquity stated. These discussions during RICS Real Estate Conference were remarkable. While most private equity players are still positive on India story, it seems to be a little longer on time frame for the returns to match what used to be a few years ago.
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