It’s rain­ing dis­counts

You have ev­ery chance of get­ting great bar­gains in Gur­gaon as des­per­ate in­vestors get ready to exit at 25%-30% rate cuts

HT Estates - - FRONT PAGE - Van­dana Ram­nani Sub­mar­ket Peak cap­i­tal val­ues Quar­ter

The un­cer­tainty over pro­ject de­liv­er­ies and un­af­ford­able sup­ply has led to sales bot­tom­ing out, es­pe­cially in the case of residential projects that are yet to be de­liv­ered. How­ever, ready-to­move in units in Gur­gaon are see­ing the max­i­mum trac­tion, with home­buy­ers pre­fer­ring to look around for prop­er­ties that of­fer a great lo­ca­tion, in­fra­struc­ture, so­cial ameni­ties and, ofcourse, deep dis­counts.

Un­like in the past, when buy­ers took quick de­ci­sions, the time taken to close a deal to­day is any­thing be­tween three and six months with con­sumers hav­ing far more choices in the sec­ondary mar­ket and get­ting much more time to ne­go­ti­ate and squeeze in dis­counts usu­ally vary­ing from 15% to 30%.

Ac­cord­ing to a re­port ti­tled In­dia Real Es­tate Out­look – NCR by Knight Frank, prices in Gur­gaon have hit a plateau and show no scope for fur­ther in­crease in the near term. The con­ver­sion cy­cle of a residential real es­tate in­vest­ment has slowed down and fil­tered out short-term spec­u­la­tors look­ing for quick re­turns. Even long-term in­vestors are find­ing it dif­fi­cult to make an exit as per their ex­pected rates given the cur­rent mar­ket sen­ti­ments.

Long-term in­vestors who were with de­vel­op­ers over a three to four-year con­struc­tion pe­riod are now look­ing for an exit, ow­ing to de­pressed mar­ket sen­ti­ments. Stag­nant prices and de­layed pro­ject de­liv­er­ies have con­trib­uted to­wards in­vestors en­ter­ing a ‘dis­tressed re­sale’ mode, as they are now of­fer­ing to exit at over a 20% dis­count on the pri­mary mar­ket price.

While in­vestors formed the ma­jor chunk of the mar­ket till about two years ago, the de­mand to­day is driven mainly by end -users look­ing for ready-to-movein units.

Real es­tate ac­tiv­ity is sub­dued in case of un­der-con­struc­tion projects. If there is in­ter­est in the mar­ket, it is for ready-to-move-in op­tions from first-time home­buy­ers, those want­ing to up­grade to big­ger units and from NRIs. The time taken to make a pur­chase de­ci­sion is painfully slow and the num­ber of trans­ac­tions few and far be­tween, says Shveta Jain, ex­ec­u­tive di­rec­tor, Cush­man &Wake­field, adding that peo­ple are pre­fer­ring to in­vest in es­tab­lished lo­ca­tions, where there is ad­e­quate so­cial in­fra­struc­ture and of­fice/com­mer­i­cal ac­tiv­ity.

Prop­er­ties in the sec­ondary mar­ket are be­ing of­fered at dis­counts of 15% to 30% in both the mid-end and high-end seg­ments by in­vestors des­per­ate to exit the mar­ket. The cur­rent mar­ket con­di­tions of­fer a dime-a-dozen op­tions for end-users in the readyto-move-in cat­e­gory. Some de­vel­op­ers have also started of­fer­ing pay­ment plans with stretched time­lines and that has got the end-users in­ter­ested, she says.

The in­ter­est in un­der-con­struc­tion projects is luke­warm as there


Newspapers in English

Newspapers from India

© PressReader. All rights reserved.