![]() Wouldn’t it be counter intuitive to economic rationale that developers would hike the property prices at a festive time when buyers look for discounts and freebies? A vast majority of the Indians don’t think so. I feel luxury housing and commercial properties might see sizable appreciation this festive season,” maintains Kaushal Soni, a 32-year-old IT employee in Mumbai. ![]() In contrast, the luxury buyers have financial flexibility, and they look for value proposition rather than saving a few lakh rupees here and there. Any hike of even Rs 200 psf would dent the buying intentions of a majority of the buyers. “In a price sensitive affordable housing, there is not much scope of price hike. Affordable housing would be least affected in terms of the festive spirit property price hike, maintain as many as 70% home buyers. Which are the segments of property that would witness to max price hike? Well, a vast majority of the Indians, 82% feel it is the luxury housing that would be witness to more price hike. ![]() More importantly, my investments are safe, compared to any other financial product,” says Suresh M, a 48-year-old textile entrepreneur in Bangalore. As an investor looking for both capital gains and rental returns, I feel property and gold are the safest bet, and in the long run CAGR returns would be in the double digit. The friends and family that I have spoken to caution me that instead of festive offers there might be a price hike this festive season. “I am investing in my second home now and am still wondering whether to make a commitment now or wait for the festive offers. There is also a general feeling among the Indians that even in the wake of a slowdown in India borne out of global recession the asset class that will show maximum resilience would be property– 80% Indians feel property may not have given the highest returns in the past but has never grown at a lesser pace than inflation. 78% Indians are apprehensive of stock market volatility and would avoid high risk for high returns. There is a general feeling across the investors that stock market is way too volatile and hence property and gold are the safest bets. The question is whether there is any room for price appreciation in the overheated and competitive property market of India? Sixty four per cent Indians feel in the present economic uncertainties after the Covid, property has emerged as the safest parking lot of conservative Indians who still see stock market returns as gambling with higher degree of risk associated. The buying formalities and the paper work will be done either during Navratra or Dhanteras,” says Sumedha Shukla, a 32-year-old media professional in Noida. So, I have made the commitment and paid a token amount of INR 1 lakh. For a 1000 sq foot of 2BHK apartment, that is an extra cost of Rs 5 lakh. “I have negotiated the price with the builder, as my trusted broker informed me that the prices would escalated to Rs 500 during the Navratra. More than half the buyers haved zeroed on the property- as many as 58% have finalised the deal much before the inauspicious shraadh begins. The findings of the pan-India survey by show that expecting a price rise, many prospective homebuyers are negotiating with the builder to freeze the price beforehand only to make the final formalities during the festivals. The survey was conducted in 10 cities, including Delhi, Noida, Gurugram, Mumbai, Pune, Ahmedabad, Bengaluru, Hyderabad, Chennai and Kolkata. Track2Realty, a real estate thinktank group, conducted this survey between August 20 to September 5 to gauge the mood of the homebuyers ahead of the festivals.
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