Get new home this festive season

Buying a new property was hitherto out of reach for home buyers given the peaking real estate prices. The demand for realty therefore, has been stagnating. Despite this, no attempts to review prices have been made to lure buyers to the market again.

According to RBI Annual Report, the number of unsold properties have not only increased but there has also been a fall in number of new launches. The real estate sector has 48 months worth of unsold inventory which is very high. However, instead of lowering prices, they depend on the Central Bank to reduce interest rates.

Industry body Assocham, in a recent survey indicated that the residential market in Delhi-NCR is trapped with an estimated inventory of 1,70,000 units, while  data compiled by property advisory JLL India and Confederation of Real Estate Developers Association of India (Credai) shows 77,460 residential units across Mumbai, Thane and Navi Mumbai are lying unsold.

Realty experts opine that in order to clear the huge backlog, there is a scope of easing property prices especially in Mumbai & the National Capital Region.

With the festive season round the corner, developers are already providing different schemes and attractive discounts on residential properties. A further 10% discount or price correction on an average is expected in the market, states a report in the Asian Age.

While the RBI Governor Raghuram Rajan in the SBI Conclave highlighted the need for lowering realty prices to stimulate demand, Navin Raheja, the Chairman & Managing Director of Raheja Developers believes that any further price cuts are not likely.