A property market is determined by supply and demand of real estate, which then dictates whether it is a Buyer’s or Seller’s market. In a buyer’s market there is more supply than demand meaning there are more homes for sale than there are actual buyers. Homes placed on the market stay there longer and then sell at the same price or a lower rate. In a sellers’ market there is more demand than supply; homes placed on the market during this time sell faster and maybe at a higher selling price.
The real estate market in India was facing a slump, with shortage of funds, unsold inventories, clearances etc. there was ample supply but no demand. In metro cities prices were too high for the common man, and everywhere the real estate market suffered. But in recent times with the Indian economy growing and with a lot of people investing, real estate has got a shot in the arm and a change in scenario is witnessed.
2015 has been a year of ups and downs for the Indian real estate market.
Buyers and investors showed little interest in the residential sector which lead into a high inventory pile up and delay in completing the unfinished projects. The reduction in demand for houses resulted in a drop of supply of good residential projects. Metro cities like Delhi/NCR and Mumbai were affected by this slump. In order to rectify this, builders changed their modus operandi and started offering incentives, creating buyer friendly smaller homes. The latter half of 2015 has seen a positive change, which is welcome by the buyer.
A sudden demand is seen both by the end users and by the investors, this is being seen in this current year and Delhi/NCR and other places are now really seeing the change in real estate slowly but surely turning into a buyers’ market. This positive trend seen towards the buyers has given a great relief to the seller.
With the new government all out to help boost economy and showing a steady trend the investor wants to invest because the picture is now clear. The land bill and FDI has been a boon to this sector. The RBI has cut down the rate of interest on housing loans to further help the buyers rethink of owning their own home. All these factors have created a balance and positivity in this sector and this will soon be a buyer’s paradise. But with the availability of projects the prices will remain the same or show marginal increase. A word of caution- see, research and think before buying to grab the good deals in the market.
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