It’s raining discounts
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.