Bears turn their focus to real estate

Stock market decline casts a shadow over buying enquiries

- RAGHAVENDRA KAMATH Mumbai, March 17

ASHOK AMBADE, A property broker in Thane near Mumbai, says he has seen a 10-20% drop in buying enquiries in the last six months. "There are very few buyers now," Ambade, who has been in the business for 20 years now, adds. Vineet Matlani, another broker, pegs the decline in enquiries at an even higher 30-35%. The luxury segment where apartments are priced over ₹5 crore have been impacted the most, he says, adding that developers are slowly coming out with offers such as 30:70 or 20:80 and so on to make sure that the phone calls don't stop after the initial enquiries.

Most agree. Home sales were driven by the demand to upgrade, which, in turn, was partly driven by the wealth effect created by the stock market. But the markets have been declining, with the Sensex losing 14% since its peak in September last year.