It is the right time to buy properties!
For all buyers who are looking for property prices to decrease even further, this is the right time for you to grab your dream homes. You should not keep postponing finalising a property any more as the huge discounts and attractive offers being offered may not stay for a long time.
Owing to market slowdown, the demand became sluggish in most of the sectors. To accelerate the sales, developers started offering exciting offers, price discounts even up to 15 percent and other freebies. However, these discounted rates are not mentioned in the official rate cards of the developers, but they are applicable for the customers who buy within the offer period.
Developers pay high interest rates while buyers get at lesser rate
Once the economy gets recovered, the developers would withdraw the discounts and schemes they have been offering now and the prices would also increase after that. Even the emerging trend hints that developers are not cutting the price, but they are ready to pass on the holding cost to buyers. If the developers have to borrow loans, they end up paying high interests. Rather they choose to offer about 10 to 15 percent discounts, which is their cost of fund, to homebuyers. Thus, the sales keep going and they are free of getting loans and paying interests.
At the same time, buyers get attracted with the discounts offered by builders and get enthusiastic to buy. For most of them look to get home loans from banks, many banks have also been offering loans at less than 10 percent. Some banks are even waiving off processing fees to make their loans more attractive.
Considering all these facts, market analysts say that, this is the right time to buy a house, especially for personal use.
Moreover, neither the banks would reduce the home loan rates further from the current level nor the developers seem to be cutting the prices further down. Mainly in Delhi-NCR, it is not likely that the property prices would decrease any further. Therefore it would be wise enough for buyers to enter the market and grab their dream house.
Launches with reduced costs
These days, we have been seeing that developers are coming up with less property launches and with lower price tags. However, this will surely reflect in the availability of residential units in the next three to five years. And then there are chances that, due to lesser supply, the prices may shoot up. It may also lead to issues like delayed completion or higher charges for hidden costs.
Over the past two years, project launches have fallen by about 40 percent compared to the peak levels of 2010. In Noida alone, there was around 72 percent fall in the new launches in the first half of 2013, compared to the same period of 2012. Due to reducing supply of new housing units, the prices would start picking up speed in the near future, believe experts. The reduced costs and launches are likely to influence the real estate scenario of micro markets in the national capital region (NCR) including Noida, Greater Noida, Gurgaon, Ghaziabad, Indirapuram, Sonipat, Crossings Republik, etc.
According to a recent report by property consultant Knight Frank, “as per the current trends, the NCR residential market is showing a slowdown in terms of project launches. However, this bodes well with the current market sentiment as absorption has picked up, which will further help in bridging the supply-demand gap. At the same time, liquidity constraints coupled with the increase in construction costs will continue to pose a challenge for developers leading to a further slowdown in project launches. This may put upward pressure on prices, which will certainly attract investors.”
Rising demand
Adding to this, it has been observed that the demand for properties has been on the higher end. During the first half of 2013, the NCR residential market has registered a total absorption of 35,000 units showing an increase of 18% over the first half of 2012. The rise in sales can be attributed to the rising number of project launches in the affordable housing segment.
As per the report, the absorption in Greater Noida (including Greater Noida West), the new launches increased by almost four times in H1 of 2013 compared to the same period last year, while the absorption levels recorded a fall in Gurgaon and Noida, mainly because of lack of affordable housing options in these markets.
After observing all the prevailing conditions of the current realty market, it is advisable that it is the right time for the end users to go buying than waiting further hoping that prices would fall.
