The fact that India was very much on the periphery of global crisis was clear from the participant responses. Despite the apparent slowdown in the building construction sector, most respondents felt this had not affected either spending patterns or business, in the upper demographic to any significant extent. However, this is qualified by their noticing a degree of caution creeping into the overall spend, especially among the middle income demographics.
“The furniture market seems to be very promising in coming years and we expect 30% year on year growth in the furniture market. There is much awareness and Western designs are much liked by Indians who are keen to buy readymade furniture which they can change easily with the fashion.
The responses differed by segment with dealers and retailers noticing a change in purchase patterns, while architects said there was no visible difference in the spend. Builders felt that clients opted for fewer extras such as wooden flooring or appliances with the apartment, but the sales were not affected by more than 10 to 15%.
Some builders who has embraced the fully loaded apartment concept completely, modified their offering to include a choice of not just different styles of fit out and furniture with their flats, but has added the option of a ‘bare’ flat to this.
Of course, the rich have different rules… As we all suspected, the wealthy march to the beat of their own exclusive drummer! While the slowdown in the markets has affected the purchasing patterns of the middle and lower demographics to an extent, the rich have bashed on regardless, cashing in on the deals offered both by builders and retailers. Some builders catering to upper end of the market say that their clientele have been eager to avail the lowered rates and have been buying apartments at an increased rates.
Not everyone has stopped spending. While people may have become subtle in the display of their wealth, they are still spending on their private spaces.
People are spending their money very cautiously are taking a longer time to decide on purchase decisions. Construction Industry is a very flexible industry. Construction is never going to stop however hard the recession might be. Because, the population is increasing and the new need for new homes is also increasing along with which the construction sector is always booming!!