Low investment interest to keep home prices stagnant
In the days to come, the prices of residential properties are likely to remain stagnant in most of the markets as there is an increase in the number of end-users investing in the realty sector.
“In Delhi-NCR, around 2-3 lakh units under construction are currently unsold. New units will come up only after these units are sold. So the prices of primary residential property in Delhi-NCR residential markets are not going to escalate for almost a year,” said Parveen Jain, President, Naredco.
According to market experts, though the prices of the property are not going to go down, a slight appreciation is expected in some of the markets. However, in most regions, prices are likely to remain stagnant in the coming months.
“With end-users entering the market, realistic pricing will become the norm with small investors looking at 8-10 per cent annual price appreciation, like in the developed countries,” said Anuj Puri, Chairman Anarock Property Consultants.
“The sector will get institutionalised once the big and professional players will be able to survive and this will also lead to a lot of international players making an entry in the sector,” said Rahul Maroo, Senior Vice-President, Omkar Realtors and Developers.
As per the Anarock data, around 68 per cent property seekers are currently looking to buy a home for self-use while only 32 per cent are looking to buy for investment. Similarly, around 84 per cent buyers prefer to buy property which will be either ready-to-move-in or will be ready within the next six months.