Thursday, 26 June 2014

Falling sales but no discounts by developers in Patna!!!!

                                      Luxurious Apartment in Anandpuri, Patna

Sale volumes at India’s top 25 listed real estate companies have almost halved in the last two years. According to Knight Frank sale volumes have dropped 43 percent from January 1, 2012 to December 31, 2013 thanks to buyers deferring property purchases in all pockets of our country, including Patna. Knight Frank says buyers have stayed away on account of a high interest rate regime, unaffordable realty prices and an uncertain job market. In Patna add to these, the drama that the Nagar Nigam and Patna High court played for one and half years regarding the building bye laws. The stress on builders’ balance sheet is palpable in the country. In Patna the stories of builders in Patna been wiped out and many flocking to Jharkhand, Bengal and even metros is widespread. In fact in most colonies of Patna you can see an incomplete residential project where no work is on in Patna real estate.

 Knight Frank observes a operating profit margin of these 25 listed companies has contracted by 900 basis points over the last eight quarters; down from 50 percent to 41 percent. Inflation according to Knight Frank is the reason for this phenomenon. It gets even worse if you look at the bottom line. Net profits registered a fall of 41 percent during the last eight quarters and net profit margins plummeted from 13.6 percent to 9.7 percent. Samanta Das, Chief Economist & Dir – Research, Knight Frank India believe that this is a fantastic opportunity for the customers now immediately to go in and negotiate with the developers to get a very good deal.

Ask the home buyers in Patna, are property prices in Patna lowering? NO, is the answer. The other fact is that neither they are increasing. The number of new launches in residential sector in Patna has diminished drastically. The commercial renting and leasing has almost stopped it seems in last one and half years in Patna. Not only the affordable housing segment in Patna but even the middle and luxury segment has been affected by delays, non delivery and many other operational and marketing deficiencies. For example two luxury projects one in Gola Road Patna and another in Anandpuri- Boring Canal Road, no doubt the location of later is far superior and the amenities (swimming pool, etc.) are too similar, plus the quality too is more personalized in Anandpuri project but the cost is almost same. We regard that the Anandpuri- Boring Canal Road location commands at least 20% premium on location basis only. Therefore is it 20 % discount in Anandpuri- Boring Canal road Patna project by Khalsa Multicon Pvt. Ltd. (8002313930) or the Gola road project by other builder is overpriced. Our team rates KhalsaMulticon Pvt. Ltd. Project as the best buy in the category of under construction luxury residential projects in Patna. To get hold of a unit of 3bhk spread over 1516 SQ FT of this project you need not only to pay a Crore but also pass an interview regarding your profile and then the profile check. But the exercise and the money is worth for aspirational living in the center of Patna.


 At present,
Patna developers need to focus on execution. As Agrani developers in Patna are handing over keys to home buyers of their earlier projects. This is a good sign because it brings in confidence in the real estate market in Patna and then when they slowly start the launches in near future definitely sales volume will also pickup; most probably in second half of 2014. Though a substantial chunk of residential projects in Patna are running behind schedule.

(Call us @8002313930 Or WRITE to us at info@buysellrentpatna.in)