Ongoing festive season holds the key to real estate developers fate resurrection. To say the least, they have been pinning all their hopes on this season as it holds their ticket to fortune land. Although the condition is still critical but after reading the recent stock exchange figures, developers are quite upbeat about the fact there is a great possibility of making a strong comeback. However after a lack-lustre last year’s festive season, developers are still not confident of expected results.
As we all know, bygone liquidity crisis saw many real estate firms plummet down. This scarcity of liquidity caused the delay in the completion of many projects. Now when there is ample liquidity in the market, only countable housing unit developers have left thus, creating a healthy void which in turn has seen surge in demand levels. The ongoing festive season looks to repair all the damage done. For those who don’t know real estate sector was the worst-affected economic sector at the hands of recession causing significant value-erosion thus, leaving the whole sector shattered.
However, speaking from developers’ point of view, they will still be sticking with their rigid approach and would aim to recover losses in this 3 months-period. Hence, no experimentation and hurrying up of things at least for the time being mainly because the market is still price-sensitive and any unplanned move can scare away the prospective customers. Wiping out debt and regaining the confidence of investors and customers is on top-most priority. Moreover, special focus is on providing townships that serve to the residential needs of middle and lower middle class families within a realistic price-band. To add to it expansion holds the key to trim down the debt volumes and developers fraternity knows that. Knowing that expansion of customer base can maximise the profitable prospects, several listed realty firms have overcome their inhibitions and have met the liquidity requirement through Qualified Institutional Placements route in recent past.
Hence, unlike last year this year’s festive season certainly has lot to offer in terms of substance however, it remains to be seen whether it fulfils expectations or not.
