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MOSL: EXPERT SPEAK (REAL ESTATE)-Scheme-led indirect price cuts kickstart sales momentum

EXPERT SPEAK (REAL ESTATE): Scheme-led indirect price cuts kickstart sales momentum; GST rate cut, ‘Affordable Housing’ scheme to boost sales

 

Mr. Prashant Thakur, (Head of Research, ANAROCK)

With over 18 years of experience in the field of Research & Consulting, Mr. Prashant Thakur is the current Head of Research at ANAROCK. After completing an MBA in Finance, Mr. Thakur worked with consulting majors like Deloitte and Ernst & Young. Prior to joining ANAROCK, he worked with the residential vertical of Quikr.com as Vice President- Research & Data Services. His areas of expertise include business research, market intelligence, business writing, and content development in diverse domains. He has worked extensively in multiple sectors that include financial services, real estate and the consumer business.

After a substantial stint in the consulting domain, he joined commonfloor.com as one of its earliest members and was instrumental in scaling up its data and research vertical. 

We met Mr. Prashant Thakur, Head - Research of ANAROCK. Discussing the Indian real estate market, Mr. Thakur spoke at length on key trends in the top-7 Indian cities — Mumbai, NCR-Delhi, Bengaluru, Chennai, Pune, Hyderabad and Kolkata. Key takeaways: 

• Pan India residential sales grew by 12% QoQ and 52% YoY in 1Q2019 despite GST related disruption in Mar’19. Developers in MMR, Bangalore and Pune activated multiple discount and subvention schemes to push sales, without reducing the headline sales price. This led to the conversion of fence sitters awaiting GST-based cuts in pricing.
• NCR developers stayed away from introducing any schemes due to low consumer sentiment in the micro market.
• Absorption has been mainly from new supplies which are affordable / lower ticket size.
• Supply planned in Mumbai Metropolitan Region (MMR) post-election is high, while Bangalore is stable and well timed. Hyderabad has very low supply with lowest inventory overhang; plus, local players are getting aggressive.
• Prices are likely to remain range-bound for some time until unsold inventory reduces to manageable levels. 2H2019 is likely to witness increased real estate activity, post the general elections.