Hide and Seek of Property! Buyers and Sellers waiting for the right time
The latest update from Cushman and Wakefield (C&W) reveals shocking data that maximum of leading property firms are holding up on launching new projects for sale. The news coming in is notwithstanding the fact that in September quarter the market is considered propitious for both seller and the buyer.
It seems like that both developers and buyers are waiting for a the right time for them; where builders are looking forward to hitching up the prices, buyers on the other hand obviously are expecting slash down in costs.
As per the research all the major cities including Delhi, National Capital Region (NCR), Bangalore, Mumbai and Chennai have seen a noticeable drop as compared to the last year. Rest aside, Bangalore which is considered as the safest and the steadiest market all over the country went through twenty seven percent drop in new initiations when collated with the last year data.
One more figure came from JLL, a real estate consultancy, which tells us that in place of the usual twenty one months supply, there is sufficient grant available for 29 months stipulation. Going deep into the research, one finds out that the builders are seen more pivoted towards the It-related demand which is more in eastern and northern suburbs.
How is Mumbai?
The situation of Mumbai is comparatively better but yet lesser than the last year growth. The reason of double amount of launches in the urban city is the approval coming through the stuck projects from the past.
Despite the holding up of the launches, builders are still not in a happy state; the reason being curtailing down of prices. Expert view says that the investors staying out of the market is keeping the demand low.
Efforts being made
Buyers are more likely to be in favorable condition because of the low demand – which forces the builders to be quality conscious in order to satisfy the purchaser. That is the reason why constructors are keeping number of units in a project low so that they can deliver good standards on time. Nevertheless, the prices are not affordable for buyers as well.
C&W’s top official told that according to him home prices are unlikely to move from the current position for some time now.
Source: Business Line
CII- JLL report, Cushman and Wakefield, Cushman and Wakefield investment, JLL India, JLL report, Jones Lang LaSalle India (JLL)
