Realty Market Stands on a Soft Ground

Bangalore: The real estate market is in the state of flux due to hike in property prices, less demand for sales and less growth in economy.  The present market scenario has dragged down sales in Delhi and Bangalore, which was maintaining the stability compared to other metros until now.  It has been observed that, there are no sign of positive market for sales despite a pause in rate hikes so far, reports CNBC-TV18.

The volatile real estate market of Mumbai is now witnessing sales slump due to decreased property registration in the city and government has recently announced development control regulations which has brought complications to developers, leading to limited new launches.

According to Edelweiss Capital report, investors in Bangalore have held up their purchase due to hike in interest rates and global uncertainties. In Delhi-NCR region the number of buyers has decreased with the decline in new launching projects and sellers are reluctant to sell their reserved properties until and unless they get huge payment from buyers.

Usually the months from October to December hold the strongest market for sales in real estate but due to present economy condition, the market picture is likely to be different as developers are inflexible with their prices. SP Tulsian of sptuilsian.com stated that developers are willing to give 30 to 40 percent discounts to private equity (PE) investors but unwilling to give discounts to retail investors.  He cited that "They fear that it will probably spoil the market".  Further explaining he suggests that real estate players should make it known to the public that they have taken a price hit of 20 percent.  "With an appropriate interest reduction, may be by the second or third tranche, the market will probable revive around diwali,” reports CNBC-TV18.

But there are other developers like Indiabulls and Wadhawa who are providing EMI waivers but there have not been any major efforts by the companies to entice customers.