Next to the information technology industry, it was the housing and real estate sector that was the talking point of 2009.

The long-term players in the field took a wait-and-watch approach, and they believe that it was worth waiting.

The prospects for 2010 look bright, say the builders in unison. As the heady prices of the boom period came down, people heaved a sigh of relief. It was good because a market correction was necessary, says K. Lava, managing director, Skyline SFS.

A fair price range is important for the market, he adds. And the way the market had boomed, the sector had become a playfield for all comers out to make some easy money. Now that the mad rush has died down over the last one year, only the strong players who have solid finances and a record of timely completion of projects continue in the field.

The white-collar workforce in the country looks at a car as the first priority and then comes housing, Mr. Lava says. The automobile industry started picking up by mid-2009, while the housing sector saw good momentum by October this year, he adds.

The Union Finance Minister has said that there has been a good growth during the year, surpassing the estimates. This reflects all-round growth, Mr. Lava says.

The property sector, one of the major contributors to growth, cannot be left behind. This is not a sector people can ignore, says M.D. Jairaj, managing director of Jairaj Builders.

Lessons

Some important lessons that the builders have learnt is the pricing of property. There is definitely more demand for houses with areas between 800 sq ft and 1,500 sq ft that cost between Rs.20 lakh and Rs.35 lakh. Many builders have turned to make more offerings in this category.

There is more movement in smaller size homes, but an all-round demand for all categories of houses was experienced in the latter part of the year, Mr. Jairaj says.

More demand will automatically come through by March when stocks will finish by the end of this financial year, says George E. George, managing director, Infra Housing.

The recession has brought down the prices to an affordable level, perhaps. These prices are likely to continue into the next year. Prices have become steady and the better prospects in store are not likely to raise them, Mr. George says. The recessionary trend has been good in the sense that there is more stability in pricing compared to the boom period when prices had gone up sky-high. The builders see the growth in metropolitan cities such as Delhi and Mumbai as a benchmark for better prospects for the property market in the coming year. They are on the upward track in the two cities and Bangalore has also started reflecting the same momentum. So, the effect on smaller cities such as Kochi is also expected to be on the same track, Mr. George says.

News Published Under:  The Hindu