The bubble of real estate boom finally had to burst. Or it may seem so. Even as many ‘incentives’ are being brought forward by the government and real estate players alike, middle-class families are still playing the ‘wait-and-watch’ game before buying property. The prices have been scaled down to woo the potential buyer too.
“I will wait for the prices to come down further,” says E. Srinath, a government employee. It was two years ago that he decided to buy a house but given the high property, he went for a car instead. “The market was already beyond our reach and we kept hoping that the rates will come down,” he adds.The boom was created artificially only to increase demand, Srinath feels. “It was created by builders because a segment of people were buying property. The per sq.ft. rate at Champapet was Rs.1,600 and in matter of months, it skyrocketed,” says A. Aparna, his wife. “Today, even with a combined income, it is difficult to get a house,” she adds.
Their interactions with local builders in the area also fuelled their decision to wait for prices to drop further. “Six months ago, a builder offered us a flat for Rs.3,100 per sft.
Three months later, he came down to Rs.2,800 and a month back, he called us up and offered as low as Rs.2,600 per sft,” says Srinath.
Now, the couple is waiting for the prices to fall even further so that they can go ahead with the purchase. “We didn’t expect the market to go up that way. But with prices spiralling down, we are going to wait for two to three months before taking the plunge,” concludes Srinath.
Friday, January 2, 2009
Dream homes still in distant vision
Posted by harsha at 5:07 AM
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3 comments:
Apart from the prices, one should also look at the payment schedules asked by any developer, project status and legal diligence on the land.
Most of the developers ask for 40% of payment even before getting permissions and starting the construction activity. In these time, for a developer it makes more business sense to use customers money to pay for permissions and construction.
Secondly the project stage. Most of the developers have some plans and go into the market and start selling. It is always safer to buy from a developer who has already paid the impact fee and got the approved plans from GHMC. This will also reduce the risk in the legality of the land, as GHMC does some preliminary legal checks.
Finally, legal diligence of the land. Since it is very difficult for every home buyer to do the due diligence on the legal side, it is always advisable to buy in only those projects that are approved by banks, particularly the Nationalised bnaks. This will reduce the risk for a buyer.
I am agreeing with Sainath. Now a day we can’t predict the prices of land rates in Hyderabad. There are lot of things comes under if in a case land value increase or decrease. I am also looking for buy a land but the price of the land fluctuated every time. I hope if any case it will come down my dream will fulfill. Recently I met one of the real estate company called Sitosys eMedia Pvt. Ltd, which is located in Madhapur. They were offered to me land at cheaper price than market the price. I was really surprised for that. Sitosys eMedia Pvt. Ltd., 3rd Floor, D Block, Krishe Sapphire Building, Near Hitech City, Madhapur, Hyderabad
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