Real Estate Prices Dip Again

Just when you thought real estate prices were beginning to stabilise, prices have dropped again.

After DLF’s price correction in its Bannerghatta Road property, real estate major Sobha Developers dropped prices by a whopping 22%. Sobha was the first to effect a price drop of 8% to 10% three months ago. Now, some of its properties like Sobha Sunscape are selling at 22% lower than the price quoted three months ago.

According to a senior ICICI Home Search official, “The first round of price drops by developers didn’t create any market stir. Many are now looking at a second round that’s sure to create excitement among buyers.”

According to developers’ association CREDAI, Bangalore property prices have fallen by 15% to 20% as compared to the same period last year and a further drop is unlikely. A 2-bedroom, 1,200 sqft apartment at Sobha Sunscape is available for Rs 38 lakh, which includes car park, registration and stamp duty charges, VAT charges, as well as maintenance deposit and BWSSB and Bescom charges.

Except in two high-end villa projects, the company has dropped prices in all properties by 15%, though some rates may be available only during its ongoing property mela.

J C Sharma, MD, Sobha Developers, said though the real estate situation still remains challenging, “the current market situation allows us to pass on benefits to the consumer”. Interest rates have dropped to 8%, service tax is out, and stamp duty rate has fallen.

“After DLF dropped prices, there’s been tremendous excitement. Today, many project site visits are happening, something consumers had stopped for the past 4-5 months,” said a leading real estate agent who requested anonymity.

Source: Times of India

Is it Wise to Invest Property Now?

The markets world over are stagnating. Indian property market, too, is facing the heat. Property prices have stabilised to some extent. Property analysts still say that the markets will see a vibrant phase in next six months and hence this is the best time to buy property in India.

Market analysts predict that property prices will take off in some time and thus property is a good investment at this point of time. Do you also feel so? Will you invest your surplus funds in the property market now, or wait for better market conditions?

Are Property Prices Coming Down Any Soon?

Property consultant Knight Frank expects further correction in home prices in India. Their recent report suggest that since the volumes of property transactions are going down, hence the asking price for property will also go down. Additionally, over-supply of property is posing as a major reason for the slow down in Real Estate prices.

Recent media reports have also suggested the same trend. Reports suggest that Real Estate Prices in Mumbai, Bangalore, Pune, and National Capital Region have corrected 15-20% in the first quarter of this year. Market-watchers say that this trend will be repeated across the Tier II cities and suburbs too. No wonder property developers are wooing prospective users with all sorts of offers. Some are even offering lower EMIs for flats while some are offering goodies like cars along with property. Still others are wavering off the stamp duty prices.

Are the property prices coming down in your area? Is the property slow down really impacting the end user in a major way? Should the home seekers cheer for some reasons? Is there a possibility of a market dive? Or is this a temporary phase in the housing segment?