Buying a residential property is widely considered as an emotion-driven decision for an end-user/home buyer. The market has been mired by several roadblocks ranging from stagnating demand to the after-effects of demonetisation. In the past decade, the sector has witnessed several highs and lows. A similar trend is being witnessed in the residential market which is still in a price discovery phase, which is expected to continue for a few more quarters. Although the market has seen a decline in number of enquiries, it has become more need-based and end-user driven investment decision.
The real estate sector was primarily driven by the investors who invested surplus money to generate high returns in the future. Post demonetisation, the liquidity has become a major concern and the market has become more lucrative for the end-user on the back of incentives, such as declining home loan interest rates, and attractive discounts, flexible payment structure offered by the developers. There are many other factors that the buyer can get apart from lucrative deals and tangible asset including relief from monthly rentals, income tax benefits, and an increase in property valuation with time. Besides this, the real estate market is considered as a stable asset unlike equity markets which are speculative and keep fluctuating in a volatile environment. Having said that, many investors invest in adverse market conditions when the prices are at an all-time low and allow the investment to grow for a longer period of time.
The market has come to a standstill with many fence-sitters embracing a wait and watch mode in anticipation of the property prices falling further, while the developers are resisting in reducing the property prices at any amount less than the pre-determined price. 2017 will be a pure customer-driven market with flexible products, lower interest rates, strong bargaining power, and varied marketing plans offered by developers (PLP, 20:80 and many more). With implementation of reforms such as RERA and declining property prices, real estate is the best investment option for an end-user to benefit from real pricing and timely completion of projects.