Home Buyers More Keen On Resale Market

“Prudence has come in as people are being careful today,” said Renu Sud Karnad, managing director of India’s biggest mortgage lender HDFC, said that which is likely to witness 18-20 percent growth in home loan take-up during April-June 2012 quarter.

In the January-March quarter of 2012, new home sales in Mumbai Metropolitan Region and Delhi-NCR witnessed slump of 58 percent and 57 percent respectively and in Bangalore, the home sales dropped by 18 percent. According to real estate brokers and consultants, a huge quantity of this business has shifted to the secondary market.

According to Brijesh Parnami, chief executive officer, distribution, at Destimoney, “People are willing to pay a premium for ready properties.” Over the past one year, not only the property prices have increased but the rentals on property have increased as well. In Mumbai, rentals increased between 10-20 percent depending on the location, whereas, in Noida, rentals are up by 30 percent and above during the same period.

Sumit Joshi, director of Noida-based real estate brokerage firm Real Credit Consultancy, state that “This is putting pressure on a number of prospective buyers who are jumping at the opportunity of buying a house they can move into so that they can save on rent.” However, in Pune, most of the potential home buyers are keen to buy ready-to-move-in property, reports Economic Times.