Residential units in India are about to boost in the coming months with marginal appreciation, added by the global research firm in the Real Estate Sector, Jones Lang LaSalle India (JLL).
About 60 per cent of residential projects where launched in the top cities other than NCR & Mumbai, price range from Rs 2,000 to 4,000 per sq ft, which is in favor of middle-class buyers.
Even measures by RBI to trim down the key rates during second half of 2012, which will increase the Affordable Homes and offer low interest costs for developer and collectively, this will make easy for the buyers to buy their project and book their dream home comfortably.
At the same point of time, the condition of the builder will also evaluate with the better cash flow, JLL also added that new developments in Mumbai and other NCR were slow due to various bottlenecks, but approvals and land acquisition have now started up to benefit them.
Various developers have acquired land on borrowed funds in order to develop Residential Projects and they have to pay interest of about 15-18 % on the borrowed funds and this have put them under lot of pressure. So any improvement will aid them in the further process.
Even in the slow down condition, the builders have not cut down the price and that is important for the country.
At the slowdown in 2009, prices of few projects had corrected their price range, but many projects still remained stubborn, whereas, there were projects offered with heavy discounts and probably the rise was due to the affordability that has made it easy for the home buyers to invest.
In the last two years, some destinations like Gurgaon Dwarka Expressway, prices have increased beyond expectations…
Overall, the Indian Real Estate has gone through a slowdown in the last year, but all the hope for purchasing property has not completely failed, still investors are showing positive interest.
