Gaurav Jha, Hindustan Times reports
With property values falling, frenzied property owners in Delhi NCR (National Capital Region) now seem to be in a selling wave, fearing further fall in the prices of their property.
Businessman Rahul Gupta is in a hurry to sell his three-bedroom flat in the Faridabad area for Rs 32 lakh, Rs. 50,000 below the amount he paid nearly a year ago. In Delhi, it is unsual for a property to be sold at a price less than the purchase price.
“I am in urgent need of money and the prices are crashing. I may not get this amount after a month. I don’t know when the market will revive,” Gupta told Hindustan Times.
“It is just a seller’s market, not buyer’s” said U.K.Bhardwaj, founder-president of the Delhi Property Deaders Association.
Sajoy Mittra, a retired bank employee, has been trying in vain to sell his three-bedroom Gaur Green apartments at Indirapuram across the Delhi border near Ghaziabad (Uttar Pradesh) for Rs. 72 lakh for the past two months.
Unlike Gupta, he is however hopeful. “I feel the laid off employees and NRIs (non-residential Indians) in the West will buy my home after coming back to India”
However, the brokers have a different take. They are not much optimistic of the market.
“There are only sellers in the market, no buyers”, said Pradeep Mishra, a broker who has operations across NCR. “For every single buyer, the market has at least five-six sellers” he added.
“The market has only 10 percent buyers, while 50 percent have disappeared because of the economic slowdown while remaining 40 percent are waiting for the prices to decline,” Mishra said.
“This is happening all over. RBI’s announcement of cuts in repo and reverse repo rate (signal interest rates) is a welcome move. But until we don’t get a rate of 7-8 percent on home loans, buyers will not have confidence in the market,” said Sanchin Sandhir, managing director at property consultancy firm RICS, told Hindustan Times.
With property values falling, frenzied property owners in Delhi NCR (National Capital Region) now seem to be in a selling wave, fearing further fall in the prices of their property.
Businessman Rahul Gupta is in a hurry to sell his three-bedroom flat in the Faridabad area for Rs 32 lakh, Rs. 50,000 below the amount he paid nearly a year ago. In Delhi, it is unsual for a property to be sold at a price less than the purchase price.
“I am in urgent need of money and the prices are crashing. I may not get this amount after a month. I don’t know when the market will revive,” Gupta told Hindustan Times.
“It is just a seller’s market, not buyer’s” said U.K.Bhardwaj, founder-president of the Delhi Property Deaders Association.
Sajoy Mittra, a retired bank employee, has been trying in vain to sell his three-bedroom Gaur Green apartments at Indirapuram across the Delhi border near Ghaziabad (Uttar Pradesh) for Rs. 72 lakh for the past two months.
Unlike Gupta, he is however hopeful. “I feel the laid off employees and NRIs (non-residential Indians) in the West will buy my home after coming back to India”
However, the brokers have a different take. They are not much optimistic of the market.
“There are only sellers in the market, no buyers”, said Pradeep Mishra, a broker who has operations across NCR. “For every single buyer, the market has at least five-six sellers” he added.
“The market has only 10 percent buyers, while 50 percent have disappeared because of the economic slowdown while remaining 40 percent are waiting for the prices to decline,” Mishra said.
“This is happening all over. RBI’s announcement of cuts in repo and reverse repo rate (signal interest rates) is a welcome move. But until we don’t get a rate of 7-8 percent on home loans, buyers will not have confidence in the market,” said Sanchin Sandhir, managing director at property consultancy firm RICS, told Hindustan Times.
8 comments:
Basically this market is premised around the greater fool theory.
So how to revive RE? As Shailesh said sometime back..RE is a major component of the GDP and therefore for economic revival maybe it can be showcased as a candidate for bailout.
But this idea that reduction of lending rates will boost the buyer market is totally flawed. The idea seems to be to sucker the buyer by showing a lower EMI..but rates change! and therefore when rates go up such buyers will be caught in a trap!!
So lowering of rates is not enough and therefore the prices have to fall. Which they will.
"I feel the laid off employees and NRIs (non-residential Indians) in the West will buy my home after coming back to India"
Is he out of mind...does he expect that the laid-off NRI or NRIs whose own houses are under water will burn their pockets more to pay these high priced flats?
Most of the laid off employees and NRI's foreclose their mortgage and other debts and run out of the US! they have barely enough money to start all over again in India. Why do people think that all NRI's will relocate to India with crores of rupees and throw it around after their life has been through such a major upheaval?
Glad to see an article for DELHI RE.
SOmehow Indians have this false belief that NRIs are sitting on a tree that has a lot of $100 notes and have a lot of money. Stupid people in India have to realise that living in US is not easy and is very expensive too. Moreover, NRIs are not stupid to burn their cash in Indian RE which is way overpriced.
Indirapuram: 72 lacs for 3 bedroom. Is he out of his mind. It is not even Delhi. It will come down to 25lacs for this flat in 2-3 years.
A lot of houses will be put on sale and as inventory grows, the prices will start taking a plunge.
People will start getting out of denial mode soon.
INDRAPURAM FLATS RANGE ONLY FROM 10 TO 20 LAKHS
I am in real estate market since long time and I can say that Real Estate is same as share market. Sometimes value of the property decreases and sometimes value of the property increases. Those people will stand in real estate market who keeps himself updated with all latest market value.
Commercial Space in Delhi
I really impressed through your blog content. Keep updating. Thanks for sharing.
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