Real estate market with the exception of Bangalore, remained sluggish in 2014 year. The volume of sales remained slow because of the high price of the properties, poor sentiments of buyers, economy recovery and lack of self-belief in one’s job, slow down the purchasing power. Only those properties which were about to completion were appreciated as buyers just wanted to keep the risk of delays at bay.
As compared to the other years, few new projects were launched in 2014. And developer did not decrease the price, they just trim down the size of the apartments to shrink the ticket size and induce the buyers more and more.
Whereas, Bangalore market hold up because most of its projects were planned for mid-segment with low price to open up options for the buyers.
Also, there is more than 45 per cent demand for office space than the previous year. This increase in demand indicates that economy is fixing up.
One of the major drawback was to avoid investing in early stage Projects of Builders who are financially unstable. As sales sluggish and financing become hard, the projects delays . It is recommended to buy projects which are completed or near to completion in 2015 year.
Investors who had bought many apartments for better returns find it difficult to stay with their investment and many of them were sold out at a low price and even some of them showed a great loss, this brought home buyers to towards risk.
2015 picture
Only if the economic recovery continues, sales of properties may pick up gradually in 2015, may be in the first half, “if we get an effectual budget with economic recovery, I would expect prices to move up in the fourth quarter of 2015,” added by Sanjay Dutt, executive MD, South Asia, Cushman & Wakefield.
Also the big cities where prices are already touching the sky, cost will not climb up soon. The potential buyers should not expect the sharp change in the rise because increase of land, high construction, money spent on getting approvals has left the builders with little scope of modification. Another reason stated “ All builders are dependent on investor to sell their projects, if the projects are sell at low price, then they will feel bamboozled.
Very true, the sooner you buy, the better price you are likely to get, so buyers should buy those home where rental is higher than 3.5 per cent.
