Rumour is abuzz that the real estate market is undergoing a slump. There maybe some truth in it considering the on-going recession.
But, what surprises me is the ongoing activity in the market. For despite the recession, construction work especially in the housing sector hasn’t slowed down at all.
And with the government stepping in to provide the much-needed boost in the face of the global economic slowdown with sops such as cheaper home loans and cuts in interest rates, chances are that people thinking of postponing their plans of buying a house might just think again and act swiftly.
If that happens, the property rates might just go up instead of coming down…so saying that the real estate market is undergoing a slump is but an eyewash.
Pupon that and if you have time do visit the Pragati Maidan on December 20 or 21 to get your queries on property related issues sorted out.
Hello world!
2 years ago
2 comments:
I agree with you on the point that property rates will go up sooner rater than later. But for now, let's not fool anyone by saying that property rates haven't come down.
Cash crunch has certainly hit the market and the schemes and freebies being given by builders are enough proofs of that. Prices that were once on the boil are cooling off. Only yesterday, I got a call saying a 2BHK (1065 sqft) flat in Indirapuram was around 25 lakh. Of course the delivery would be made in 2011, but then when were the prices around 25 lakh...in fact they were touching 30+.
I'd gone to inquire about Gaur Ganga project in Vaishali in 2006 and then the price was around 25. So, if one is getting a flat for 25in 2008, certainly there is a slump considering the inflationary trends, the prices of iron, cement going up etc.
I agree builders are holding up prices, but when they have to take loans from banks at exorbitant interest rates of 20-25 per cent, they can't hold on for long. A 5-8 per cent decrease in rates in the forseeable future is in the offing. Then, the rise will begin again around March-April 2009.
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