According to various sources (mostly local property dealers and consultants) the price of the properties in Delhi are supposed to fall anywhere between 15 to 30% during 2010-11. Although, most of them agreed upon the point that this decrease in the capital value of properties will be limited to Delhi city only and the properties in the nearby areas such as Gurgaon, Faridabad (in haryana), ghaziabad, Noida and greater Noida in UP will not be affected. Prices will keep increasing in these cities. The main reason for this fall is the saturation in the prices of properties in Delhi. Sources claim that the steep increase in the property prices in Delhi was not natural and was caused by the investments from Foreign parties (NRIs and foreign real estate companies).
The price fall will be considered as correction. Correction states to a situation where the prices reach the unusual heights due to the interest of investors in the properties, but later when all the investors are packed with properties and are not left with no funds to invest then they think of selling the properties. They then seek for end users or real parties in the market. The end user who is always seeking a low budget deal would bargain hard to purchase the properties. The end user follows wait and watch policy and takes time, which makes the market full of options for him and the supply overtakes the demand by huge difference. This competitive situation reduces the prices and the end users are benefited by all this. This condition of property market can last for 1 to 4 years. The capital city of Delhi is sure to face this condition soon.
So, it is going to be in the best interest of buyers (the real end users and not investors) to wait and watch before finalizing any deal regarding property. The price fall will enable these buyers with ample choices.
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