With the country’s economy not in a vibrant mood, real estate market is going through a slump. But for buyers waiting for prices to crash maybe disappointed as experts predict prices to revive and market to turnaround soon.
Read through various media reports and it will tell you there is a slowdown in the real estate market of Gurgaon. Prices have not moved up in the last few months and new projects have not seen daylight. The interest in the market is at its minimum and you will find more sellers than buyers. However people, who are waiting for the prices to come crashing down, maybe disheartened. Talk to Manoj Yadav, a real estate broker in Bhiwadi and he will explain, “Even during a slowdown in the property market, do not expect prices to come crashing down like a stock market. Most new buyers in the market get misguided when they compare real estate market with the stock market. Real Estate bubbles act much slower and price correction need not necessarily mean that an INR 30 lac worth property will suddenly be available at INR 20 lacs.”
What Manoj says is validated by a comparative study between the drop in interest and drop in prices over the past 3 months. If you check the Google
search index, you will realise that there is a significant drop in the searches of various real estate projects in Delhi, Gurgaon and NOIDA
between Sepetember 2013 to December 2014. The phenomenon is expected to continue in the first half of 2014, at least till the country gets over with the coming Lok Sabha Election.
Compare this with the price movement of various properties and you will find that the graph has moved slightly or not at all. The fact that prices have not moved over the past three months can be considered as a slowdown. Manoj emphasize, “Slowdown is about price stagnation, not price decrease.”What are the various property experts saying?Vimal Kant, owner of Real Estate Broking firm Aspirations, Gurgaon
People who are interested in real estate are moving towards Bhiwadi. Most of the land in Gurgaon is already sold and hence new projects will not be as many as they were. Now that Gurgaon has managed to position itself as a dream location for many house hunters, I see the prices move up in the mid to long term soon. However we must acknowledge that there are concerns. Businesses are also shifting to newer locations and new job creations are not happening at a rapid pace. To push up the prices of the existing inventory, you need more people moving in to the city to work.Mr. Sanjeev Srivastva, Managing Director Assotech Limited
Gurgaon is one of the best real estate destinations in the country and its shows an excellent potential. There is huge demand that increased real estate activity in this region. For Gurgaon, there is never a dull period. There are some policy paralysis at Govt. level, which is perceived as a slowdown by many. But after the 2014 LokSabha election, I see a rapid pace of price escalation in the Realty market of Gurgaon(Note: Assotech has multiple properties in New Gurgaon and Dwarka Expressway)Mr. Vineet Relia, Chief Operating Officer, SARE Homes
Anything to do with real estate requires to be viewed from a long term perspective. You do not buy a home for short term stay/investment. If you understand it, you will see the rationale that is driving realty developers to continue launching new projects in Gurgaon. For all those who understand the real estate market knows sentiments are positive towards market. There may be short bursts of correction and stagnation, but business
is run with an eye on the long term as the economic growth. And from that perspective, we do not see Gurgaon’s real estate to slow down. (Note: SARE Homes has a property named Crescent Parc in Sector 92, Gurgaon)Prices will not fall further. What should you do now?
When the stock market is down, most experts will advice you to buy. This probably will be the best time to buy a house. You can push your builder, broker, dealer or the seller for a better discount. Prices may not fall further. They will stagnate over a period of time and then move up. So, unless you want to be entering the upward rising prices, this maybe a good time to buy your dream house. However, on the flipside you may be stuck with a longer time before you get possession. Builders won’t be pushing construction aggressively when the money in not flowing in fast.
This article is categorized under
Opinion Section. The views expressed in this article are solely
those of the author and do not necessarily represent the views of
merinews.com. In case you have a opposing view, please click
to share the same in the comments section.
you for subscribing to our news letter.