Well-known property developers expect a 15-20% rise in average price realisation by 2010-end, following a rise in realty sales Industry experts opine that the realty market in India is expected to perform much better in 2010 as against 2009, following a steep rise in demand, primarily from the residential sector. “The pick-up in enquiries in the first month of the year clearly testifies to the fact that the country’s property market will witness considerable growth in 2010,” says Ashwini Singh Virk, managing director of Jagson Realtors, a mid-sized realty firm in New Delhi.
This rise in realty sales will eventually lead to a 15-20% increase in average price realisation (APR) of renowned property developers by the end of 2010.
Jones Lang LeSalle Meghraj (JLLM), a global property consultant, too feels that property sales will shoot up considerably in 2010 on the back of improving market conditions and robust demand. JLLM confirmed that both residential and commercial realty witnessed rise in enquiries in January 2010.
 Impressive figures
The Lodha Group managed to sell properties worth Rs 3,700 crore in 2009 and expects to increase the sales to Rs 4,500 crore in 2010. The group currently has 38 ongoing realty projects, of which 34 are residential apartments within the price range of around Rs 3,000-70,000 per square feet (sq ft). The group expects that they will register a minimum of 15% increase in their APR.
“We feel that APR will significantly rise in the areas that plunged to deep lows during the economic meltdown. Therefore, Mumbai and Pune are likely to witness a significant rise in APR by 2010-end,” says Lalit Kumar Jain, chairman and managing director of Kumar Builders, a reputed developer headquartered in Pune.
Mr Jain further revealed that Kumar Builders plans to launch 12 new projects by the end of 2010 and feels that the current year will be far better than the previous year. He also opines that the realty sector is likely to witness a quantum leap over the next 4 years due to robust demand.
Parsvnath Developers, which currently has 57 ongoing projects, plans to deliver 10-12 million sq ft over the coming 12 months. The company is confident of a strong 2010 and expects to increase its APR by 15-20%.
Jeeta Bandopadhyay |
