Home buyers still in doubt about the recovery of real estate market

Propelled by the hopes of an economic recovery, Noida’s real estate industry has dusted their offices and is waiting for the good times. They feel that the sales will happen only when the customers gets rid of the uncertainty hovering in their minds. Noida witnesses a hope of a recovery of the market conditions as the tents are back on the streets and property brokers are seen explaining different project details to prospective customers.

The experts expect the market to show even more upward trends although there is some purchase happening. Sales that are happening now are mostly at the pre-launch stage as the prices are lower of the new projects, yet to commence construction. The experts note that the response from the customers seems to be slow when the projects are officially launched. Buyers are also buying finished properties at hefty discounts from investors. This happens to be a signal of the revival of market conditions, according to the experts.

In spite of lower price levels, over the last few quarters, apartment and house sale have been very slow, the IT city, Bangalore, being an exception. Significant mark down in prices has been noted of new projects over existing ones. Even 31 percent lowering of prices over the prices in June in the National Capital Region has not attracted potential buyers. This unearths a basic issue of real estate industry: buyer’s assessment of affordability. In simple words, it means the buyer’s understanding of the risk of investment in the particular market conditions. Many home buyers are still in a predicament about the recovery of the real estate market, opine experts.

The buyers who are mostly from the service class are seeking more security and prosperity on their job front. This is expected around March 2015 when the purchasers can commit for a life time purchase. The ray of hope for the marketers lies in the fact that the real estate industry has received more inquiries in the preceding three months which makes the real estate industry feel relieved.

High officials of the Confederation of Real Estate Developers opined that the market is probably waiting for a trigger which could be an interest rate cut, improved GDP, or a stock market gain. The experts feel that a decision from the bystanders can be initiated after any of these triggers.

With the buyers’ inertness and the companies having a heap of unsold inventory, this festive season was devoid of too many pre-launches. Sources say that in the month of June, companies’ unsold inventory neared about 765 million sq. ft. which is equivalent to 7,60, 000 two-bedroom apartments which can take about three years to clear at the current rate of sales.

Builders at Places like Noida, Navi Mumbai, Gurgaon, Greater Noida, and Thane are facing such problems, who are offering schemes on existing projects on a 20 % down payment and the rest after 18 months with no rent or EMI in between.

By observing the market conditions and trends, the experts feel that the ensuing festive season would witness a 20 % higher sales compared to the preceding two years.