Wednesday, November 19, 2014

Real Estate in Gurgaon shows significant change during last 5 years

Real estate purchases are auspicious in India. However, over the last few years, the shaky economy resulted in a very poor real estate market. Sellers tried to unload their properties, but buyers sat back and waited for the economy to stabilize before they spent their savings.
It’s 2014 and times have changed, though. A new central government, new business policies, and a flourishing economy has affected the Indian real estate market considerably. In fact, popular investment areas like Gurgaon are seeing a huge flip-flop in prices and investment attitudes.
Real Estate in Gurgaon
According to a joint report released by EY and the Federation of Indian Chambers of Commerce and Industry, the real estate market contributed about 6.3 percent to the national GDP in 2013. This sector was also expected to generate about 7.6 million jobs during the same period. By 2025, the sector is expected to generate about 17 million employment opportunities in India. Due to rapid urbanization, rising revenue levels, and positive demographics the Indian real estate market saw considerable growth in 2013.
The year 2014 has changed the real estate market though. The year started strong with great property rates and burgeoning investment in commercial and private properties. However, sales of residential properties declined in mid-2014. This was particularly true in around Delhi-NCR. In 2013, Gurgaon was THE place to buy property. Reliable builders, lovely properties, affordable rates, great amenities, wonderful infrastructure, and rapidly rising property rates were the main reasons for this national and international interest. Property rates spiked in 2013, but in 2014, many markets dropped.
Several real estate developers are now reeling under high debt due to flaring construction and labor costs. They also had to contend with high interest rates and delayed product delivery that depressed the market even further. Gurgaon was considered India’s premier realty market, but it is now facing a fall in real estate rates that could prove lucrative for first-time buyers. Several builders have already launched properties, and they are offering Statements of Purpose as well.
However, the increase in supply is not commensurate with demand and this has led to an oversupply of great properties in the NCR – Gurgaon region. This subdued demand resulted in an automatic correction of 5 percent to 10 percent in property rates in the same region, according to India Info Online. This pinch was also felt in the commercial property market as well. The fall in interest was attributed to the subdued job growth in the IT market and sagging hiring rates in the software industry. According to The Economic Times, prices could stagnate or fall marginally over the next year, making this a great time to buy property.
2014-2015 – The Real Estate Market For Buyers
This real estate market could be great for property buyers. But even though the supply of property is rising, many buyers are waiting for the market to fall even further.
The Delhi-NCR residential market faced a downward trend in demand since early 2014 as buyers waited for prices to fall further. Some market experts were also predicting a 17 percent fall in demand, which could lower property rates even more, according to the FICCI report. This could change anytime though. With the Union budget posting substantial incentives, the market could rise and level out by 2015, according to Meri News. As a result, mid-2014 to end-2014 is a great time for small buyers and first-time investors to snap up properties in the NCR area. Market experts are also cautioning buyers from waiting for home loan rates to fall further.
Another very important tip offered by industry watchers is to choose areas like Greater Noida West where you can find property in Gurgaon by Unitech Group. These areas have several new properties and supply is high. Buyers can negotiate rates and get some discounts as builders are trying to sell property faster. Commercial property can also be a great investment opportunity as corporate buyers have postponed expansion plans leading to a glut of commercial property for sale. For small buyers, this is a great potential opportunity to diversify a financial portfolio with commercial investments.
Meri News also stated that the overall mood in the market is optimistic. The recent changes in the budget and a slowly improving GDP could result in the real estate market rebounding by late 2014 to early 2015.
The Bottom Line
Many buyers are sitting back and waiting for the prices to stabilize, but this decision could backfire on them. With a new progressive government in place, a budget that’s focused on improving the realty sector, and a burgeoning GDP, buyers should snap up residential and commercial properties right away. Cash-strapped builders are offering discounts, statements of purpose, and various freebies in order to help sell stagnating property. Buying property now could mean a huge profit for you down the road, provided you make smart decisions.