June has seen some movement in market, though not enough to ring music in builder's ears. Bookings are taking place in Projects under construction and few new Projects which offered good rate in locations close to Hitec City/Gachibowli
Its quite clear that there is no large depth in the buyer base to flood the market with buy requests. However, June has seen slow build up of positive sentiment.
Since the buyer base is shallow, only builders who offer best terms quickly, can get them. Obviously companies have jumped in to get as many bookings as possible. It may take another quarter to build up more buyers. If they miss the current bunch of buyers, they will have to keep grinding for another quarter to see movement.
Aparna is a prime example of this. They crashed rate to Rs.2799/sft from the high levels of 3300 to 3800/sft and is offering Rs.15K rent straight away. Buy offering the low rate for short period with rent, they aim to garner reasonable numbers from within the shallow buyer base. Off course even with reduction, only buyers with budget above 55L, can touch this.
3.0 Ashoka, Manjeera , Aliens, Ramky etc
Ashoka is trying by offering a Car together with home for new Project. Manthri is back advertising that it has booked 2 blocks and third is open. (Off course no one outside would know whether the two are REALLY booked or not.)
Manjeera , Aliens, Ramky all are trying to pull in bookings, by making special offers. Buyers should utilize offers.
4.0 Indu City
Big projects like Indu City have suffered since Rate of 2800/sft for a project to be built, that too deep inside Pragati Nagar, is no more considered exciting, since projects getting ready for delivery like Aparna, are at same rate now.
With buyers still worried about potential delay in large NEW projects, its those under construction, that are benefiting by offering large discounts.
5.0 Ambience's and Emmar
Projects like Ambience's and Emmar which offered to sell at preposterous rates are no more in the picture. Lodha say the flats are only for Invited People. But their Hoardings invite all and sundry to call them.
6.0 Low Budget
For lower budget buyers, Janapriya (Madinaguda) is offering at Rs.1650/sft (They advertise Rs.1450/sft but that is for 65% of flat size. What all gimmicks!) . But Janapriya is definitely not known for quality of materials used and finish of work. People from Hitec City who booked at projects like Utopia are regretting the decision. The intrinsic quality is poor. That is all one could get at Rs.1650/sft anyway even at Madinaguda beyond Mumabi Highway.
7.0 HMDA Struggles
HMDA continues to struggle for funds. It failed to get response for 100 Acre auction in Miyapur and has once again invited bidders for Acres to develop Apartment blocks. Poor response shows builders are in no mood to buy land and launch new projects.
HMDA has launched Green Channel for Project Approval. By paying higher fees developers can fast track approval process by getting technical and legal clearances done through authorized engineers and retired revenue officers. With builders in no mood to launch many projects, HMDA can not expect to make much out of this now. But for Developers this should offer a new channel to bribe and get early approvals.