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| Builders in IT hub to focus on middle, upper middle segments |
| Bharathi Raghunath/PTI / Bangalore Nov 11, 2009, 11:00 IST |
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After almost a year of lull due to the economic downturn, the real estate sector in the country's IT capital is slowly picking up and is all set to focus on the middle and upper middle segments, where it envisages huge potential.
Customising their offerings, builders are keen to capture these segments, which are witnessing increasing demand.
For Mantri Developers Pvt Ltd, "the recession for all practical purposes is over as far as the real estate sector in the city is concerned".
The Bangalore-headquartered group, which has been in the business for over 10 years, admitted that there was "slackening in demand from October 2008 to 2009. Prices had hit rock bottom and customers were holding back, anticipating further slash in rates".
But post-April, there has been a surge in sales in the industry as customers realised that "there would be no further decrease in prices", an official of the firm said on condition of anonymity.
The firm, which is looking at the upper middle class and high-end segments, sees a rise in demand in both, more so in the upper middle category.
"However, despite the slowdown, demand never slackened in the high-end segment", the official said.
The firm's two ongoing projects, one in the high-end (ranging from Rs one crore to Rs 10 crore) and two in the upper middle class segments (priced at Rs 35-70 lakh) will be completed in another six to eight months.
"Thanks to the slowdown, it is the genuine buyer who is coming forward now instead of the investor. These buyers want the reassurance of reputed brands which are cash flow positive and the pace of progress is visible", the official said.
The firm, which has also taken up projects in Chennai and Hyderabad, rates the Bangalore market as the "best", compared to Hyderabad where is it is "reasonably good" and Chennai where it is "picking up".
Shahwar Pasha, Assistant General Manager, Business Development, Prestige Group, echoed similar sentiments about a resurgence in the market. "It is the end-user, the actual buyer who is ready to buy now".
The Group, which was earlier targeting only the luxury market (Rs 75 lakh- Rs six crore) is now "seriously looking at the middle and upper middle segment as enquiries are for affordable homes".
Pasha, who feels the "demand for the high-end is a little less", hopes the market will be vibrant by the middle of next year.
Expressing a slightly different view, Pradeep Jacob, Marketing Manager, Confident Group said "demand for apartments has bottomed out in the last nine months. The demand for apartments is flat now".
The four year-old group, he says, has been successful because they have focused on plots, townships and low-budget (Rs 17-20 lakh) and middle category flats (Rs 30-40 lakh).
"Our low budget and middle segment flats' sales have been good because they are within a 10 km radius of IT companies", Jacob said.
The group, which has catered to a "diversified segment," including the high-end in the form of villas, says it has "not witnessed any decrease in demand for villas".
Suresh Goel, who handles marketing for Salarpuria, the Kolkata-headquartered firm which has been in Bangalore for the past 19 years, says the firm intended to take more projects for the middle segment as it sees "a growing demand" there.
The firm, which has two middle category projects in Bangalore North has witnessed "maximum sales in those", he added.
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