It wasn’t that the demand for realty died down. It only remained dormant; this was more an upshot of the subprime crisis bubble in the US. People were scared invest given the tightening of funds, general uncertainty in their earnings and savings and all that. This had a rippling effect with reactions like check on prices, sluggish construction pace and nationwide lukewarm sentiment on real estate prices.
Things are now looking up. There was this apartment in my flats that had gone down from 90 lakhs to 67 lakhs during the last six months and the neighbouring house owner now quotes 80 lakhs for the same floor plan. I’m trying to say that there has been a price correction in the last one month. The builders are now more confident of delivering on time. I read this in an article in Deccan Chronicle, Aliens Group managing director Hari Challa says and I quote, “We assure that we will complete Aliens space station-1 by September, 2011, which was clearly mentioned in the agreement copy. Work has been going on in full swing as we have already sold 75 per cent of flats". I checked up on their site and progress and the customers now seemed happy.
There is lot more stability in things even in general.
The pent up demand that was there in the market has started getting converted into business and people have started buying, yes, the pace could be better than this, but the buying is happening.
There have been stimulus packages, there is some good work on ensured availability of liquidity to the home buyers, interest rates have softened and this has generated a positive air and demand in the market. The cut in housing loan lending rates may attract a few more buyers into the market.
Interest subsidies and extension of tax holidays for projects that will get completed by 2011 has brought about positivity in the micromarkets. This has encouraged developers to take up new projects and expedite ongoing projects. This builder (my friend has bought a flat there) whose construction work was going on at a sluggish pace has picked up speed and the works seems to progress in full swing.
Lets say that the prices are picking up and the true opinion floating in the market is to invest in completed projects and not in upcoming projects. What do we tell about this?? Do we live our dreams and go fer a house that is comin up with the features that we want or take up an already built up house and make an adjustment? I want a dream house and am going to invest in the projects coming up. I was probably thinking Aliens in Hyderabad or Prestige in Bangalore :)
ReplyDeleteI agree with Zaid above. Investing in property is not a simple choice and it is going to stay with you forever. If it was for me, I would rather go for something that I really enjoy living in, which is more than just a roof over my top.
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