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Tips And Updates For Home Buyers On Residential Real Estate

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By Author: kamal prakash
Total Articles: 47
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The COVID-19 crisis has had a major blow to the residential real estate sector. In addition, ANAROCK reports that sales in the first half of 2020 were down 49% in the top seven cities overall compared to the same period last year. To regain demand, developers offer buyers discounts and schemes. But is the price bottoming out, or does it make sense for the home buyer to wait a little longer before buying the dream home?

As the impact of COVID-19 becomes apparent, developers will prioritize cash flow over revenue. From COVID-19 onwards, the impact on pricing depends on the market and the type of project. The Luxury segment will have the most impact, as discretionary spending will decline. For example, in the central and southern parts of Mumbai, such projects have already seen price cuts of 10-15% over the last few months. This trend can continue as developers focus on cash flow.

In cities such as Hyderabad, Bangalore, Chennai, and Pune, there are projects for many middle-income groups (about la40 to ₹80 lark). In addition to price cuts, multiple sales schemes and payment plans are the main drivers of sales in ...
... this segment. Therefore, many direct markdowns may not be seen in this segment. The low-income housing segment (below ₹40 Lark) is most affected by COVID-19. Ticket sizes are already affordable, and price cuts are not a major driver for regaining demand. This segment depends more on the economic recovery.

Low supply helps balance demand and stabilize prices

From the 2008 global financial crisis to the current COVID-19 situation, the real estate sector was under tremendous pressure. Prices have softened or remain stagnant in certain markets. This is an inflationary economy, which means price correction. Given the uncertainties surrounding the current crisis, further price corrections in the short to medium term cannot be ruled out.

However, it is important to remember that certain fundamentals may help maintain current price levels in such situations. For example, a new major launch may not help to balance the overall market (supply and demand). The prime micro-market remains resilient to further price declines as trading activity does not necessarily reflect low demand.

More discounts likely to match the affordability of homebuyers

We have seen softening real estate prices. During a recent survey, the developers seem to have announced various proposals, such as offering cash discounts, GST and stamp tax exemptions, and subvention schemes.

These discounts range from 5% to 20% with an average 6% correction across the top 8 cities in India. The luxury segment sees high corrections of 15-16%, while mid-priced housing projects can see up to 10% corrections.

The country is still in a partial blockade and real estate activities have not been fully resumed. Only 30-40% of the projects are starting construction with a limited workforce. Anxiety resulting from unemployment and pay cuts creates uncertainty for buyers, which affects demand. Only 30% of the projects in these cities will see discounts and offers. It's not happening entirely. An additional 10-12% price fix is expected across the board to bring price and affordability equality.

Time to purchase due to a significant reduction in cost of ownership

In high-end markets such as Mumbai, real estate prices have already softened with a 25-30% adjustment. Price declines are primarily caused by the resale market. The primary price hasn't been modified much. Affordable categories and locations like Bangalore are more resilient.

There are opportunistic activities as buyers with the appropriate liquidity are considering investing. Probably the lowest cost of ownership in 10 years, EMI has dropped from £1,000 per rack to nearly £700 per rack. It's a good time to buy a residential property. People may postpone the purchase right now, but we expect the interest in residential real estate to rise again as the situation stabilizes.

Are you planning to buy houses in Hyderabad and finding it difficult to decide on location and projects, don’t worry! Ease your house hunt with Exclusive Online Property Portal, www.propertyadviser.in, which is solely an archive of residential real estate projects in Hyderabad. It provides comprehensive details of every project with analytical data on price trends and the availability of units.

It listsmore than 700+ Apartments for sale in Hyderabad and more than 70000 Flats for sale in Hyderabad with different unit sizes and facings. For Affordable houses for sale in Hyderabad in the best location with all kinds of facilities and road connectivity, visit the property adviser portal and find area development news and info to analyze and have comparative ideas of the locality and the projects.

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