Buying property while the market is sluggish is a smart move any day; and currently the market is dragging at a snail’s pace, believe realty experts. Unaffordable realty price and higher interest rates may deter buyers, but discounts and freebies offered by developers coupled with wider location choices make the realty market a buyer’s market. Buyers, however, are advised against buying property in draft town planning scheme areas.
The real estate market at both national and local level has been under pressure for nearly two years. However, the realty experts do not expect the market to crash.
Hitesh Shah, CEO of Residential at Space Management, said that rates are not likely to nosedive due to higher land cost as well as increasing construction cost. “It is advisable to seal the deal at 10 to 15 percent discounts offered by the developers,” said Shah.
Similar views were expressed by Vijay Shah, Chairman, Gujarat Chamber of Commerce and Industry’s (GCCI’s) infrastructure committee. “In the current market situation, the end users can get rightly located quality product at reasonable rates,” he said.
The experts in real estate market also believe that end users do not buy residential properties for short term gain, so they need not worry even if a little correction takes place after buying the property. “In the long run, property prices are going to increase though at slower rate because land shortage will increase with each passing day,” said a leading developer of city.
It would be wise for buyers to consider the legal status of the property and understand how they would cope with increasing interest rates. The Reserve Bank of India (RBI) increased repo rate by 25 basis points thus setting the stage for increased home loan rates provided by banks.
The Gujarat High Court recently cancelled development permission of a residential society in Bopal as the Ahmedabad Urban Development Authority (Auda) had given development permission despite the fact that a town planning scheme was at draft stage. This has led to the AUDA not issuing development permission in draft TP scheme areas anymore.
“The buyers must take into account the risk of booking a property in draft TP scheme area till the issue is been solved,” said Vijay Shah.