Elections May Delay the Supply of Homes As Parties Being Funded by Developers.
As the election dates are marking its nearness. The polling campaign may hamper the approval and the financing of various projects as these strategies are coming in their way of construction activities.
According to a scrutiny done to get a better picture of relation between the coming up elections and property market Mr. Nair who is the COO at JLL India's largest property Consulting Firm made the puzzle much clear by stating that those developers who are funding various candidates are delaying their projects, the root cause given to this delay is the scarcity of liquid cash flow and unavailability of sufficient funds.
Most of the real estate developers are actively or passively connected to politicians and that is a solid reason why during each election money is vacuumed out and poured out to campaign. It is mostly seen that the primary landowners of assembled projects have more political tie-ups.
The real estate sector is going through a serious concern of hampered and deferred delivery. Taking the recent case of Gurgaon where only one third of the promised residential surplus for 2013 was supplied. The case was almost same in Noida were only one fifth of the residential supplies were made.
As a result of the coming election and their campaign many of the real estate developers have put new launches on hold and have lend their concentration towards elections and the upcoming poll. This delay is also linked to the delays in the approval process which is also a matter of concern in the real estate sector. A great amount of confusion also prevails in regard to the grant and sanctions also.
The founder of one of the real estate research firm mentions that the potential home buyers are following a policy of wait and watch keeping other factors along.
These upcoming elections have created a huge pile up of supplies in various cities. Mumbai has a pile up supply of closely 48 months, Bangalore also had stagnate supply for past 25 months whereas Delhi has delayed the supply process for 23 months.
So this election there will be a delay in all the real estate construction across the india
The most potential residential markets like Mumbai and Delhi-NCR have recorded a dropdown in sales percentage from a straight decline from 50% to 30%. It completely lies to the belief that the customer sentiment will improve only in the third quarter of 2014.
According to a scrutiny done to get a better picture of relation between the coming up elections and property market Mr. Nair who is the COO at JLL India's largest property Consulting Firm made the puzzle much clear by stating that those developers who are funding various candidates are delaying their projects, the root cause given to this delay is the scarcity of liquid cash flow and unavailability of sufficient funds.
Most of the real estate developers are actively or passively connected to politicians and that is a solid reason why during each election money is vacuumed out and poured out to campaign. It is mostly seen that the primary landowners of assembled projects have more political tie-ups.
The real estate sector is going through a serious concern of hampered and deferred delivery. Taking the recent case of Gurgaon where only one third of the promised residential surplus for 2013 was supplied. The case was almost same in Noida were only one fifth of the residential supplies were made.
As a result of the coming election and their campaign many of the real estate developers have put new launches on hold and have lend their concentration towards elections and the upcoming poll. This delay is also linked to the delays in the approval process which is also a matter of concern in the real estate sector. A great amount of confusion also prevails in regard to the grant and sanctions also.
The founder of one of the real estate research firm mentions that the potential home buyers are following a policy of wait and watch keeping other factors along.
These upcoming elections have created a huge pile up of supplies in various cities. Mumbai has a pile up supply of closely 48 months, Bangalore also had stagnate supply for past 25 months whereas Delhi has delayed the supply process for 23 months.
So this election there will be a delay in all the real estate construction across the india
The most potential residential markets like Mumbai and Delhi-NCR have recorded a dropdown in sales percentage from a straight decline from 50% to 30%. It completely lies to the belief that the customer sentiment will improve only in the third quarter of 2014.