In other words, they forget about the popularity of “exotic loans” and assume everybody always used market-rate 30-year fixed rate financing. Every real estate analyst is forced to used assumptions when forecasting the future prices of homes. Gurgaon, the Millennium city suffered a 20 percent decline. Market watchers said that the off-take, in both the residential and commercial housing, in major pockets of Gurgaon, slackened.
The macro- conditions were not favorable due to the downtrend in the IT sector, slowdown in the Indian economy and high interest rates.The year 2013 was also an eventful year for the Indian Real Estate sector with the introduction of a Real Estate Regulatory Bill and a Land Acquisition Bill in the parliament. According to data from various sources, property prices have seen a correction recently. But, is the real estate market headed for a crash, an event that many prospective buyers have been waiting for?
"It is the moment that every buyer longs for. Looking forward for the real estate prices to go down," said a local. Viewing the condition through a dealer's eye, pessimistic thoughts rule their minds. According to Nikhil Arora of the Arora Estates "Their is no improvement in the market and I don't even see it coming."
The on-going preparations for General Elections of 2014 have further affected the liquidity in the system. It is assumed that most of the buyers are waiting for the right time i.e. post elections for booking properties. Arun Garg of Ranil Infratech says "Investment market is working smoothly right now, let's see if the same can be said for dealers after elections. End users are waiting for the right time."
The silver lining is that most respondents, that included realty developers, contractors, PE funds, banks and financiers, are positive about the economic scenario and expect an improvement in six months. Neeraj from Green Estate quotes "Sentiments are positive. Buyers are coming in and we expect a rise in the market. Let's hope the realty pushes up". With the Navratris on a roll, the real estate developers see a chance to incur their losses. It is considered to buy or invest in property during Navratris. Real estate developers in the National Capital Region (NCR) are offering freebies and discounts to lure buyers in the Navratri (nine-day festival) that began on April 1. Offers vary from free parking and free power backup to free air conditioners and attractive payment schemes.