It’s rain­ing dis­counts

HT Estates - - HT­ES­TATES -

is trust deficit in the mar­ket. The end-users are wary of in­vest­ing in un­der-con­struc­tion projects and cer­tainly not in­ter­ested in lo­ca­tions that have po­ten­tial to de­velop in the fu­ture.

Also, the plot mar­ket i n Gur­gaon has taken a beat­ing by at least 35% in the last one-and-half years as the in­vestors have started tak­ing in­ter­est in new zones of the Delhi mar­ket, she says.

Ag rees Mu­das­sir Zaidi, na­tional di­rec­tor, res­i­den­tial agency, Knight Frank In­dia. The ab­sorp­tion of res­i­den­tial units in the Gur­gaon mar­ket is lim­ited, vol­umes have bot­tomed out and buy­ers are cer­tainly averse to tak­ing ex­e­cu­tion risks be­cause of which they are more keen on go­ing in for what­ever is ready, he says.

Trans­ac­tion vol­umes con­tinue to be low and there is a sig­nif­i­cant gap be­tween pri­mary and sec­ondary mar­ket, says Surabhi Arora, as­so­ciate di­rec­tor, re­search ser­vices, Col­liers In­ter­na­tional.

How­ever, some green shoots have also seen a good re­sponse. That is be­cause these projects have been launched at a slightly lower rate than those pre­vail­ing in the mar­ket, she says.

Dhruv Khanna of LJ Hooker says that he’s man­aged only about a hand­ful of prop­erty deals over the last few months as the mar­ket is fairly stag­nant.

While there is de­mand at ev­ery price range, prop­er­ties are be­ing made avail­able at a dis­count of 20% to 30% over their peak prices. All deals are hap­pen­ing at three to five-year-old prices, he says.

For ex­am­ple, a villa project s a n dw i c h e d b e t we e n t h e South­ern Pe­riph­eral Road and the Golf Course Road Ex­ten­sion, priced at R15 crore three years ago is avail­able for ₹ 10 crore to­day. It was launched in 2007 at ₹ 7.5 crore.

Also, deals that took 15 to 45 days on an aver­age to close, are now be­ing fi­nalised in at least two to six months. Buy­ers to­day have started shop­ping around and are try­ing to squeeze as many dis­counts as pos­si­ble and tak­ing far too long to take a de­ci­sion, he adds.

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