Branded housing supply soars to 56 pct of net house supply: ANAROCK report
Indian brand consciousness, prime affordable locations, government policies dictating the market and reduced brand dilution perception are among the major factors that led to soaring in branded housing supply.
Gone are the days when the name was just a part of fame. In metros and tier 2 and tier 3 cities, a real estate developer’s brand name wields considerable clout. Real estate players with high-recall brands have upped their game and accounted for a whopping 56 per cent share of the total housing supply in 2018. There has been a y-o-y rise in their share since 2015, when their share of the supply stood at 41 per cent.
Speaking on the reason for such development Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants said, "Branded developers are not necessarily only listed players. Real estate developers who have been operating for a decade and more, newly-formed entities of large conglomerates, and also those with sizeable areas under development either locally or Pan-India, are now recognized as branded developers. Most of these companies new supply is no longer limited to the premium and luxury segments. They have spread themselves across the high-demand affordable and mid segments (comfortably priced within a budget not exceeding Rs 80 lakh)."
Speaking on several factors leading to rise in branded housing supply Prashant Thakur of the ANAROCK Consultants said, "Indian brand consciousness, prime affordable locations, government policies dictating the market and reduced brand dilution perception are among the major factors that led to soaring in branded housing supply to the tune of 56 per cent."
Standing in sync with ANAROcK report Rakesh Yadav, CMD, Antriksh India Group said, "India is among the top 3 most brand-conscious nations globally. No longer restricted to the super-affluent class, brands have found resonance across the Indian consumer value chain. The Indian consumer’s quest for branded products spans almost all products from fashion, gadgets, cosmetics and toiletries — and now even homes." He said that the aspirational value attached to high-recall brands is not merely a quest for status. As with clothing and gadgets, well-known developer brands are known to deliver much more in terms of design, specifications, overall quality and after-sales service than their generic counterparts.
"Homes built by such branded developers convey the assurance of having invested in the right product. Not only do they provide better durability and superior living experience, but they also yield better returns in terms of rental income as well as capital appreciation," said Rakesh Yadav of Antriksh India Group.
On government policies dictating the market and helping homebuyers to a larger extent Prashant Thakur of ANAROCK said, "DeMo (Demonetisation), RERA and GST put a hard leash on unregulated practices — and their practitioners — in the Indian real estate. Small developers were particularly impacted. Low sales, lack of capital in hand and zero weight with private equity funds caused several smaller developers to either exit or court consolidation via mergers, acquisitions, and joint developments with larger organised players." This reduced the brand dilution and hence the rates. So, the government policies have played a major role in the development of real estate by ensuring the safety of the homebuyers.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.