Buying real estate is widely considered a safe bet by Indian investors, even though the market might show otherwise. Like every other market, real estate too has its highs and lows. For instance, the real estate market boomed between 1988 and 1994, and most property prices went up by over 10 times during this period. However, the bear market that followed was very challenging. By 2002, many properties were being put on the market at half the peak price they achieved in 1994. If one considers the ..
Lack of buyer interest
The market has witnessed a marked decline in the number of people buying residential properties. One of the main reasons for this is the fact that property prices remain high compared to the average income of individuals. “There is end user interest, but what buyers are waiting for is reasonable and affordable prices,” says Rahul Mehra, CEO, Dara Build Tech. “As of now, end users are only looking at projects that are priced appropriately, ..
As a result of the dip in the demand for property, investors and builders, who developed and hoarded residential properties expecting prices to rise, found themselves unable to sell their inventory. The unsold units in eight large cities in the country have already hit an all-time peak of 1171 million sq ft, up by 22 per cent from last year. If the current rate of sale persists, it will take more than three years to exhaust the existing inventory.