With 402 million active internet users in India by the end of 2015, phenomenal growth of e-commerce and availability of adequate infrastructure and system controls, the real estate industry has become a veritable goldmine once again.
“E-auctions have a tremendous future considering the benefits they bring to the entire process of buying and selling properties. It’s early days yet, and early adopters of the exciting and immensely lucrative e-auction platform will be the ones to benefit the most. In fact, e-auctions are all set to become the new standard in real estate marketing, and will totally revolutionise the sector in the years to come,” said Ashwinder Raj Singh, CEO-Residential Services, JLL India.
Bengaluru has seen a rapid rise in real estate development with both commercial and residential leasing space growing exponentially in the past. The first to capitalise on the internet was the renting and selling platforms and in a short period of time, many companies joined the race. The growth of the real estate business also brought with it the drawbacks associated with it.
A senior manager with State Bank of India working in the housing loan department said that due to lower home loan interests and fabulous offers, the city saw one of the highest number of borrowers in the country as the urge to invest in real estate is high and it is still a favoured destination because the compared to other big cities the asking rate of property is still low, which provides more lucrative investment opportunities for the future.
As a result, the city also has its own share of loan defaulters. Until recent times, banks conducted physical auctions of distressed properties by posting newspaper advertisements and making arrangements for serious potential buyers to assemble at a given venue. However, limited awareness and the massive efforts involved in conducting such mainstream auctions often failed to result in the expected sales.
“Even though such properties attracted discounts of up to 10-15% as banks merely wanted to recover their costs and not necessarily earn profits, the stigma associated with distressed property auctions and the secrecy surrounding them caused most buyers to steer clear of them. E-auctions are set to change this mindset as they take place in the virtual world, and anyone make their bid on residential properties with a real hope of acquiring them at very favourable prices,” adds Ashwinder Raj Singh.
Meanwhile, for the sake of transparency (since trust is a major factor in the success of e-auctions) developers, government institutions and banks provide detailed information without withholding any details, which means one can buy properties not under dispute without hassles or misgivings.
Credits Bangalore Mirror