New Delhi: Owing to default and non-completion of projects by developers, the confidence among the homebuyers across the country has been dented and properties of only big and trusted brands are selling currently, according to HDFC Chairman Deepak Parekh. “The trust factor is so low among potential homebuyers today. But if a Tata, Mahindra, Godrej or a Shapoorji or a DLF etc comes with a project, they do sell,” Parekh said in an interview to PTI recently.
There has also been a change in the profile of the buyers from investors to end users in the residential real estate industry in the recent years. “Where the demand transformation has happened, is that the customer profile has moved towards end users, because there is no appreciation and the rental yields on housing have come down,” Parekh said.
He also pointed out that many of the buyers bought properties that they should not have. “What is key in real estate which not many people have followed is, you have to have the right developer, which is people with good reputation and people who have delivered in the past. Then you need to have right sized units and right price,” he said.
He also quelled the perception that the whole of the real estate industry is suffering with poor demand and said that “phenomenal” sales were taking place in affordable and mid-market segments.
Parekh also pointed out that the industry and real estate players are also changing in the country. “With RERA etc, now there is some kind of rethinking, after what we saw over-exuberance in the past of buying land at whatever price… people bought land at exorbitant prices in the past.
“There are some developers who are genuine and who might have been under stress due to lack of sales, or they bought too much land in one go and are now getting hurt.
Parekh also made a strong case to provide some kind of support to the real estate companies by the government. “What I want to stress is that India needs developers to make housing, malls, offices and all, who you have to support them and hold their hands,” he said.