To buy or not to buy has now become a mystery for the indecisive masses looking to invest in the real estate sector. But for most of the investors and end users, this equivocal ?yes? of the experts is not as reassuring as it sounds.
Although investment in the country?s property market is seeing a slowdown, but the end-user sales have not been affected much. The government?s efforts to set the slowing economy in motion seem all set to prove fruitful and industry experts are hopeful that both the investors and the end users will soon return to the market. The investors are getting used to act with diligence and plan their investments with a long term vision rather than snapping up the short-term benefits.
The recession might have some hidden advantages for the end-user property buyers. The trend in Indian real estate has, although temporarily, shifted from buyers market to the sellers market. That?s a rare chance not only for the end-user property buyers but also for investors who can use their negotiation skills to gain further discounts on the already falling prices of properties.
However, there has been some price correction in the market. The overall prices of property have come down and the builders are also offering huge discounts to buyers with cash down payment offer against ready to move in properties. This has skewed the balance in favour of the buyer. Also, the job market is seeing consolidation and the salary hikes are expected to be moderate this year. Real gainers at this time would be those who are sitting on cash and can strike killer deals with ready cash payment options.
When the demand increases, there will be more profitability for the builders too. Buyers are also putting in effort by
slashing down prices and putting up
attractive offers on various apartment combinations available. This will drive sales further. Builders are also focussing on the mid-income group to bring houses within the reach of this consumer group. All this bodes well for the buyers who can now transform their dream house to reality.
Many property developers dealing in premium apartments are now focusing on completing existing projects instead of launching new projects when the slowdown began. Now, as their real estate projects are nearing completion, they are willing to offer discounts to the tune of 40% for ready to move in apartments.
It is a sad situation for those who bought properties at the peak time solely for investment purposes. They had expected further escalation in the prices. Now, when the demand has dropped suddenly and prices have also come down, they stand to lose.
The best thing for them to do would be to hold the property for some more time if they don?t need to sell it immediately. In that scenario, they will have to settle down at lower prices. Thus, it is a beneficial situation for buyers and end users of property and real estate.
The current property market situation in the country suggests that this may be the best time to buy property.