PANJIM: The realty business in the State has been a lot like the economy, dull and depressing. Builders have built fancy buildings that have remained unsold. Exact numbers are not available as to how many flats remain unsold in the State. However with the number of people moving away from the grade one cities of India and setting up base in places like Goa increasing it begs the question if this has helped business. Has there been an increase in the number of people renting rather than buying flats outright?
Dinesh Sinari of Sinari Developers said the market dynamics had not changed for the better. He said “The market is bad and sales have certainly dropped. This has been the reality for a while now. There is a lot of stock in the market and no one is buying.”
Vishal of Essel Builders echoed the sentiments when he said that nothing was really happening in the market. He said “If I can call it encouraging is that I answered five enquiries for my project. The last few months were absolutely blank. I have projects ranging from Rs 50 lakh to Rs 2.5 crore and the markets are so different for those price points. There is nothing happening in the Rs 50 lakh price range.” Asked about the 2.5 crore price range he said people were still buying he said there were certainly queries. So if that is the condition of the purchase market then are people renting more? Calls to estate agents revealed a more complex picture.
Raj Mehta of Shree Ganesh Lands said that business had slumped with the job market having taken a hit. He said “There are certainly students’ coming from all over to study but that is an entirely different market. That is steady business and low paying. With the economy having taken a hit with the ban on mining, companies in the State are not recruiting people at senior levels from outside. I am not saying it has stopped completely it is just that there is not much business for everyone. Senior executives are willing to pay up to Rs 50,000 a month for accommodation in the city which means it is close to a school and good medical facilities. Mid level executives are willing to spend up to Rs 15,000 a month. We used to have quite a few of the mid level executives every month but there has certainly been a slip.”
Neeraj Sharma of Sharma Real Estate said business was really bad with no business having been transacted for more than a month.
Desh Prabhudessai, President of Credai Goa said that nothing really drastic had really happened with the market being very slow. With so much stock in the market he said the smart buyer could get good deals from builders who were feeling the pinch. No one he felt was reducing rates because the cost of land was so high in the state. Rentals he felt were not picking up because of the poor sentiment in the market.
A long time observer of the market who did not want to come on record said the business was in a tight spot and he would not be surprised if the small time builders were pushed out of business. With regards to rentals he said it made sense to rent since the monthly rentals were much lower than EMI’s. The possibility of interest rates increasing possibly sometime in the future could mean a greater burden for the salaried class and perhaps it made sense to rent. He felt the market would stay depressed for a year till the country’s economy picked up. Till then he felt it made sense to twiddle ones thump. The business he felt would have to just hang in there and hope the economy improves for jobs to be generated. That would generate queries and possibly sales. Till then he felt the talk of whether rentals were being preferred over purchasing would remain just that, talk.
