Property Prices and its Trends :An Expert Advice
Live chat with users hosted by Mr Aditya Verma, CEO, Makaan.com on Moneycontrol.com. Please have a look at the chat transcript below –
Q: Can online portals start adding transparency to the legal documentation of properties listed such as title clearance, approved layout, status of approvals such as environmental clearance, PCB NoC, etc. This will make it easier for buyers to make decisions?
A: Hi there, this is a good suggestion and should be considered. I believe there is a real need to bring these key aspect in front of home buyers. This will create a transparent and vibrant real estate culture. Thanks for this tip.
Q: Should one invest in property @ Goregoan?
A: Goregaon in Mumbai Western suburb is an ideal combination of mix use development and is highly recommended for investment. Over the past 12 months the prices there have appreciated by over 15%. Appreciation in property prices is higher in Goregaon East Vs Goregaon West. The current psf rate there are between 12,500 to 13,000/-. Hope it helps.
Q: Is it right time to invest in real estate?
A: If you are looking at self use, then the time from now to next 12 months will be ideal for investment as the property prices are under control and developers are willing to give freebies and discount. I feel these situation will start to change from beginning of 2016 and property prices will start to rise from there on. So, now is a good time to invest for self use not for investment. Hope it helps.
Q: I am looking to invest Gurgaon but not sure about the area? Do you suggest Dwarka expressway (purchase a resale) or shall i invest in Gurgaon? Thanks!
A: If you are looking to invest in Gurgaon property, there are multiple options for different budget range. For budget of 40-100 lac, I would advice Manesar or Daruhera. For budget of 100 - 250 lac, I would advice Golf Course Extension Road. For budget of over 250 lac, you can look at Golf Course Road, M.G.Road and areas near Cyber City. Hope this helps.
Q: Hi sir, all i want to know that if stock market is booming on a bullish trend then why it`s not so in real estate business?
A: I am not a stock market expert but the current issues with real estate are 1) High property prices 2) Unsold inventory 3) High mortgage rate and 4) Delay in execution of existing projects because of liquidity and litigation. It is expected that these headwinds will continue of impact the growth over next 12-18 months post which you will start to see a real growth.
Q: Hi, do you think we have any objective data to prove that subprime crisis has impacted property prices around 2008-09 or is it a presumption that it may have affected the prices ? Do you think the impact is over and the prices will rise again ?
A: Hi there, very valid question and yes there is sufficient 3rd party data available to suggest that property prices were impacted during the sub-prime crisis. You can look at Makaan.com Property Index (MPI) for price trending from 2008 to 2014. The current situation is not due to sub-prime and I strongly believe that property prices will start to move up from beginning of 2016.
Q: Sir could you please! notify the resale property price of Amrapali plots in noida?
A: Since you have not specified the area it is difficult for me to answer your question but I encourage you to use pricetrends.makaan.com to track property prices in over 4000 areas in India.
Q: Please advise where is the right location in NAVI MUMBAI for investment point of view and what is return period ?
A: There are multiple investment locations in Navi Mumbai. You can look at Nerul, Panvel and Kamothe which can give around 8-13% appreciation over next 12 months.
Q: Sir i m planning to buy 1 bhk in kanjur marg mumbai it is pre launching project & bulider is Jaypee group, wat u suggest about that, i have seen lot of complaint about this bulider in internet
A: As a policy, we do not comment on individual developer or project. However, you have done the correct thing by looking at the feedback on the internet. You can also post your query on forums.makaan.com where you will get answers from people who are considering investment.
Q: Is it ok to buy under construction flat? Builder has given 4 years time frame to complete the project?
A: It is your call. You should invest in under construction project only after verifying the credibility of developer and looking at his previous track record. There are several projects that are going past their promised delivery so take this step after proper evaluation.