Residential Real Estate Is Emerging As A Buyers' Market
The residential real estate market in India has been nearly stagnant for the past three years. But it could be on the path to retrieval. The current year may bring an end to stagnancy, allowing the market to grow. Home sales were better and unsold inventory was lower in the first six months of 2016.
In the first quarter of 2016, there is a visible revival in the sector. Sales have picked up in cities like Mumbai, Hyderabad, and Bengaluru. There has been a six-fold rise in launches of affordable housing projects. Initiatives of developers, like giving attractive schemes and deal terms coupled with a lowering of interest rates have urged the laid-back to become homebuyers. Real estate developers projected better demand in the extremely price-sensitive residential real estate.
Residential real estate is becoming a buyer's market. Buyers have an upper hand in the market. With the additional benefit of flexible interest rates and attractive payment plans, consumers have more options to choose from.
What are the benefits of buying in a buyer's market?
If unsold inventory rises, property prices usually fall. The bargaining power of buyers goes up too. If the deal is not worth it, buyers have the option to walk away and look for other options. In a buyer's market, they have all the power.
To get more discounts, buyers should look at properties that have been on the market for several weeks or months. It is quite possible that the developer is already offering some price reduction, and that there are flats that are still unsold. This strongly suggests that the seller or the developer is hoping to sell them as soon as possible. In such situations, buyers can get as much discount as possible. They can ask for add-ons such as additional furniture or upgradations in the kitchen, apart from a heavy discount on the listed price.
Confusion to avoid
Homebuyers are not too sure which property they should buy. So, inventory has been rising. Buyers can focus on projects by reputed developers and ignore the obscure, small players in the market. Well-established developers know the market better. So, instead of approaching minor developers, wise buyers should go for renowned one.
How buyers can benefit
- A wiser buyer approaches developers who have a good track record in delivering flats on time. This will lower the risk.
- To ensure that your flat is delivered on time, pay attention to the project's market response and inventory sold.
- If you are looking for under-construction projects, consider only those which are likely to be completed in one or two years.
- Look at well-known housing areas where social and physical infrastructure are in already there.