Is the party over? Why the sound system gone silent?
Darkness is about to envelope the Real-Estate space! Like it or not! What the 'deadly worldwide pandemic' could not do to the undying spirit and enthusiasm of developers, a seemingly innoxious series of events have managed to send ripples through the spines of most resilient of the lot. Indian markets, irrespective of the industry, are dominated by sentiments more than economics. And why not? After all, Indians are known to be emotional, sentimental and often superstitious as well. A mere increase in lending rates by meagre percentile can give sleepless nights to a borrower. RBI played a perfect spoilsport by inflicting insomnia on millions of existing and prospective borrowers. Not once but twice, within a matter of few days. How do you like it! Stock market performance is like marriage celebration in the neighbouring house. The joyful mood spreads in the immediate neighbourhood. Ditto holds good for gloom as well. A blip in the stock market indices can make a person turn soothsayer of the economy, even if he is not connected to the stock market, even remotely. We speak excitedly about the courageous Ukraine and their heroics in the ongoing, unexpectedly fiercely fought war with Russia. But we are also well aware of the side effects that are connected to us distantly, if not directly. Indian consumer perfoms best in 'discount & rebate' environment. As long as the stamp duty rebate continued, the mood was upbeat in the sales room of the developer. But an additional percent of stamp duty dealt a hammer blow to the head of the customer who was slowly getting used to restored stamp duty slabs, to the pre-pandemic levels.
To add fuel to the fire, a country as diverse as India, never runs out of trivial Socio-Political events taking centre stage of our day to day lives. These issues not only affect the market sentiments but also affects the consumer behaviour and their decision making process. As the monsoon clouds are gathering density in the skies, the Real Estate Skyline is certainly entering the overcast conditions. The walk-ins are dwindling and so are closures. Flashy advertisements, which most Developers misundestand as marketing, will not help. Tough measures are meant for tough situations. Smart Marketing with sound practices will continue to reward the Developer and help to keep the prospective customers engaged.
Many Developers will succumb to the old saying "Market Kharaab Hai".
But "Market Is Good If The Marketing Is Good".
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