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
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