The major concern of buyers today is the site progress. There are instances where the buyer has charged exorbitant rates by showing off world class amenities and yet they have failed to deliver what they have promised.
It doesn't take a rocket scientist to find out the effects of a down turn and also that a recession takes a bit of a bite out of all sectors in the economy, due to the trickle through in economic trade. If you speak with anybody who is involved with new construction and also buying or selling of the same, a recession gives them a nasty headache.
Before you start wondering how recession affects new construction, let’s see the overall scenario. During a downturn, fewer people want to either buy or sell unless its an absolute necessity or its from a trusted seller who has earned a name in delivering his promise. As is typical of a new construction, it is very capital-intensive. Very few people would actually trust a new venture and actually wait to see his money grow. Though it is difficult to assume the time when recession might hit and a new venture might have already started when the unwelcomed downturn arrives, and weighs down the market.
Now, if a buyer happens to be in the market to buy a property at that stage and the Construction Company has realized the pressure of the unexpected downturn then the buyer is lucky. In the sense, he gets a lower price and he is on the favorable side of the bargaining group. This in turn inevitably affects the home seller who is unduly affected with low profits, cash crunch and hundreds of unsold flats and the final result is lesser trust in the market.
A builder cannot just sit back and contemplate his loses. Hence what he in turn does is that he reduces on the amenities and reduces the Quality of Construction which in turn brings down his cost of construction. Many add-ons are negotiable and these are the few elements which a developer brings into the bargain to reduce loses. This speaks for a good bargain for both sides in terms of price and clearance of inventory.
Yet there are some builders who do not compromise on the construction quality or amenities provided which is the very essence of construction. Some builders in Hyderabad like the Aliens Group is going slow at the construction site. Yet they promise to deliver all that they have promised. The buyers and prospects are really skeptical in this market condition. Yet Aliens Group has caught this pulse of the market and has implemented a practice of sending out monthly site updates to the customers.
It has been difficult for the Real Estate Players in the real scenario to keep up the trust of a builder. Yet in any usual situation like which has been discussed above, realty developers have not lost hope on recovery. Seems like their prayers will be answered in another 3 months and one of the worst affected sectors will become a key element for growth of the economy.
