#1

Buying a house? Itís right time for realty check

in Sale ! Purchase ! Rent Thu Dec 05, 2013 11:48 am
by vikram • 1 Post

A recent report from property consultancy firm Knight Frank says that real estate prices in certain Mumbai areas have declined by 10%. The same report says almost 45% of the new properties that are coming up in the city are unsold.

Real estate consultants say the story is not very different in other big cities as well, where prices have softened. Is it the right time to invest in real estate ?

"My sense is that this a good time for investing in property. The prices are subdue across cities because of the uncertain political and economic scenario. These are the two macro factors that affect property prices.

If a stable government comes to power at the Centre post-elections in mid-2014 , prices will rise due to improved confidence levels, though the reverse would also be true in the event of a fractured mandate.

Economic Times.


Last edited Thu Dec 05, 2013 11:49 am | Scroll up

#2

RE: Buying a house? Itís right time for realty check

in Sale ! Purchase ! Rent Wed Dec 18, 2013 5:59 pm
by taware
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It makes no difference for a person whose budget is around 50-80 lakhs.....as 10 percent decline is the overall picture but when you actually go and plan to buy you will see a totally different picture.....

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#3

RE: Buying a house? Itís right time for realty check

in Sale ! Purchase ! Rent Thu Jan 02, 2014 9:10 am
by India construction cost up by 30
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According to real estate consultancy Jones Lang LaSalle, the absolute cost of construction has increased by about 25% to 30% over the last 4 years and the capital values have gone up by about 20% in major cities in the country.

The current cautious market sentiment is likely to continue until the H1 of 2014.

Cost of finance up

The cost of finance has increased in the light of banksí reluctance to fund what is currently perceived as a high risk sector.

In addition, most of the private financial institutions have also switched from providing equity funding to debt funding. Equity funding involves taking some risk against expectation of higher returns and debt funding on the other hand is usually at a high fixed interest rate.

Mr Anuj Puri chairman and Country Head of Jones Lang LaSalle India in the sector review for 2013 and outlook for 2014, expects the market sentiment to improve during second half of 2014.

Buyer power

Tracing some of the key trends in the backdrop of tough economic scenario in the country, the report highlights how there has been some shift of bargaining power in favour of buyers during 2013 and there has been rise of the suburbs.

Affordability to drive growth

Providing a broader outlook for 2014, the consultancy sees affordability will drive growth in 2014.

With availability of land in urban agglomeration being scarce, redevelopment will emerge as another growth driver in a scenario where there is cost an time complexity with regard to and acquisition. Therefore, Indian cities present an exceptional opportunity for developers.

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