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Old January 17 2011, 04:04 PM   #1
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Icon18 Price Correction?

When will there be a correction in real estate prices?

As a buyer, I feel totally frustrated by these frequent price rises. Things are beyond control and I do not know who is buying at these levels.

Experts, please suggest whether it is a good idea to buy a piece of land and build a co-operative society ourselves?

- Varun

 
Old January 18 2011, 02:24 PM   #2
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I think you should not base your decision of buying a flat / holding on to that on hopeful market correction. It should be driven by affordability and need. I am not an economist but as an individual I don't see any major/marginal correction in near future. Even if there will be any, it will the time when may not attempt to buy flat(i.e. during recession). So, my advice to you is, determine your budget, fix up the location, go by the market/price trend in that area and grab if you find any suitable property.
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Old August 7 2012, 01:48 PM   #3
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Advice held good for over a period of 3 years. Noone knows the future though.
 
Old October 31 2013, 10:08 PM   #4
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prices have corrected in D-6 Vasant Kunj , 55 to 70 for LIG, 1.1to 1.3cr for MIG and 1.75 to 2cr for 3bhk HIG, this is from my personal experience..
 
Old November 1 2013, 05:01 AM   #5
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Correction in real estate prices will not happen unless buyers get sophisticated and understand how real estate prices are set. The builders sell their flats to underwriters who hold on to them and then pass them off to consumers at higher prices.

Sold out, or merely held back? - Indian Express

Quote:
Industry experts say developers are creating an artificial situation in concert with brokers. This is also done as a marketing ploy of creating a situation that leads prospective home buyers to think that demand is high and that they should buy the property now or else it will become more expensive. Developers also use these strategies to create an artificial shortage of their apartments. Not only does this nudge buyers towards a purchase decision, it also allows developers to sell the next phase of their project at a higher price.

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Originally Posted by varun_789 View Post
When will there be a correction in real estate prices?

As a buyer, I feel totally frustrated by these frequent price rises. Things are beyond control and I do not know who is buying at these levels.

Experts, please suggest whether it is a good idea to buy a piece of land and build a co-operative society ourselves?

- Varun
 
Old November 1 2013, 02:26 PM   #6
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Well, i would like to compare & contrast this with our stock market. We all know it touched a historic high and what not. But what about the retail participation? It is at really low level!
Why? Because the current stock prices dont make sense to most retail investors. I mean, look around..the auto sector is struggling..the banks are facing liquidity crunch and rising NPAs..the fmcg sector is bugged with inflation..others like oil/natural resources are fighting shady governance and vote bank politics. Its only the IT sector that is hearty but too only coz of exchange rate & marginal growth prospects?

Amid all this, do you think its justified for the stock market to rise this much? Only because some big funds sitting outside india have spare money to bet on?
Similar is the deal with RE market, the economics dont make sense but a big chuck of inventory is held by builders/investors who have easy money at their disposal.

And due to their clout..we retail home buyers slowly give in..after holding out too long and seeing affordability going out of window, desperation & frustuation takes over one day!

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Originally Posted by suhail_zone View Post
I think you should not base your decision of buying a flat / holding on to that on hopeful market correction. It should be driven by affordability and need. I am not an economist but as an individual I don't see any major/marginal correction in near future. Even if there will be any, it will the time when may not attempt to buy flat(i.e. during recession). So, my advice to you is, determine your budget, fix up the location, go by the market/price trend in that area and grab if you find any suitable property.
 
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