being privy to investor groups in delhi-mumbai, here is what is happening behind the scenes.
the builders are trying to sell only 40%-60% of their just-launched or underconstruction inventories in the current scenario. The rest they plan to sell when the market supposedly improves 4-6 years down the line. And by that time the buildings and projects should be fully completed, so they plan to make bigger profits at that time.
Do not be influenced by the sales figures shown. They are just bluffing. And the fact is most of these pre-bookings get cancelled as the months progress.
Think like an investor, suppose the lower market rate is 6000/psft and you book a 1000sqft flat at that price.
Price = 60L
Booking price = 2L-5L
Suppose the market rates reduce to 4500/psft (only 25% decrease).
Price = 45L
Loss since booking = 60L-45L = 15L
So the investors happily cancel their booking at no interest refund of booking amount or even at a 10% penalty (i.e. 10% of 2L to 5L = only Rs 20K to Rs50K), just to prevent that 15L loss in valuation!
The best way/point to purchase will be if you get a price which is not more than 20 to 25 times the average annual rent in a similar appt in a similar location.
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