Realty rates have started declining. Investors are out and actual buyers are gearing for fresh purchase.
The party may be over for sellers of real estate but it is the time for other side of the coin to shine. Wait is over for hundreds and thousands of property buyers who were waiting for a price correction. The rates have, as of now, declined upto 25% in Mumbai and upto 50% in Delhi, Hyderabad, Bangalore, Ahmedabad and upto 75% in rest of India. Property exhibitions organised by Maharashtra Chamber of Housing Industry at Mumbai recently showed some sign boards of discounts and people selling over the counter were showing body language of negotiations. Those who were mercilessly not interested in negotiation and raising rates every hours are now seeking business.
It is a good sign for the real estate sector since the theorem is now proving that volumes can be archived by declining the price level. While stamp duty in the state was 10%, nobody was interested in paying it. But when it had touched 4% mark, the collection was above estimations.
It is the time for actual buyers. Investors, generally, do not invest in falling markets. Hence a clear mandate given by the market in favor of actual buyers who were waiting for almost 5 years for a correction. Still, a further correction is awaited because of non realistic prices. Builders who have purchased costly FSIs and land are changing their strategies. Buying in residential segment will start any moment now since fear of further increment of interest on housing loans is on the horizon.
Golden period is now on for buying since price, the only hurdle, started declining.
Source:Accommodation Times
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