Indian Residential Property -
A Shadow of Caution On The Festivel of Lights - Mr. Anuj Puri, Chairman & Country Head, Jones Lang Laslle India
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| Mr. Anuj Puri, Chairman |
The festive season looks a bit subdued for property buyers this year. The price corrections that were anticipated in the primary cities have not materialized, at least not in the hoped-for magnitude. This has put many fence sitting buyers who were hoping for the combined benefit of reduced rates and Diwali discounts in a uncomfortable position.
Correction in prices..!
The fact is that the monsoon period is traditionally a slow one for Indian real estate developers, and this is factored into their business plans. In other words, the slowdown in sales that we have been witnessing over the past three to four months was not necessarily an indication of a coming correction in property prices.
The last quarter of the calendar year is typically the most active one in Indian real estate. During this quarter, number of NRIs (Non Residential Indian's) visiting India also buy residential properties for self use, as well as investments. This is the period that developers have their eyes fixed on. Builders who have not yet relented on their pricing will probably continue with their hard stance in anticipation of the increased demand.
In other words, residential property buyers should not count on hard discounts or discounts on the actual selling price – during the festive season. As a matter of fact, prices may rise again if developers achieve satisfactory sales volumes during the Diwali period. Only if the expected sales volumes do not materialize will builders consider lowering their rates
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Offering freebies...!
This is a gamble that real estate investors may consider worth the risk, but it is a highly inadvisable approach for end user buyers. If a property is affordable at this point in time, it makes sense to take the plunge now, while a lot of developers are offering additional freebies.
Property buyers should keep in mind that real estate – especially residential real estate in the primary cities – always appreciates in the long term. You will eventually recoup your financial outlay and also reap healthy returns on investment. Delaying your purchase decision further in the hope of lower rates in a few months is not worth the risk of having to deal with even higher rates instead.
I can't emphasize this enough – it is a mistake for genuine home buyers to attempt to catch the so-called ‘market bottom’. Even seasoned property investor find it a challenge to time the real estate market with any degree of accuracy. If you have identified a suitable home that is affordable to you, get off the fence now. Keep your primary objective in mind – that of owning a property that serves both as a home and the most reliable and rewarding investment for the future.
Best possible deal..!
Hoping to purchase at the lowest possible entry point is a not a game that retail property buyers should play. Such an approach is best suited for professional investors with diversified portfolios who can bear the potential loss of erroneous calculations.
The best ally that a genuine home buyer can have in a time like this, when the market seems poised to go this way or that, is a trustworthy and experienced real estate adviser who will find the best possible deal within the available budget.
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