Not all
asset classes have been on a bull run in anticipation of the election result on
May 16, 2014 when votes will be counted.
Stocks
may have been surging over the past few months but the secondary residential
market has been going the other way, according to anecdotal evidence and the
data thats available.
Prices of
tens of thousands of homes built by local builders & investors in the metros have crashed by as
much as 20% to 30 % in the past one year, with their owners desperate to exit a
market in which buyers seem to have completely disappeared. Brokers are left
with a lot of free time.
Inside
his tinted-glass offices in south Delhis Safdarjung Enclave, realtor Mr. Sunil
Kapur holds up a list of 50 houses in the area that are for sale. Since, there are no property buyers, hes been
whiling away the time by surfing the Net or watching Mr. Narendra Modi and Mr.
Rahul Gandhi on TV during the month-long election campaign. There is no
point... there are no buyers.Those who come by are also not interested to buy
at these prices, he said,as he winds up for lunch followed by an afternoon
siesta,hoping that the situation will change dramatically after the election
result is out.
Deepak
Parekh, Chairman of Indias largest mortgage lender HDFC,'' The real estate
market is certainly soft today. Secondary sales have slowed down and prices in
that segment have come down."
The
number of unsold homes is rising, said Anshuman Magazine, MD, Property
consultant CBRE South Asia. The situation in the residential market is
getting worse and piling inventory is mounting extra pressure on the investors
holding capacity.This seems to be a good time to buy,but few buyers are
convinced, he said.
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