Why prices are dipping for properties in Delhi NCR...
As per my understanding and observation the real estate sector is not seeing appreciation rather we are seeing depreciation in prices. Reason can be multifold. Below are few of my observation. Please correct me if you feel I am wrong somewhere.
1) Huge area available in between Noida to greater noida i.e. Beside the greater noida expressway.
2) People are no more seeing it as a very good investment option. Means only actual buyers are more to the buying.
3) Due to metro connectivity some areas which were not at all buyable has become prime location.
4) Huge competition between builders has made them competitive in terms of price and features.
5) Real estate companies are trying to create good repo by giving flats are reasonable prices.
In my opinion correction is still possible but we should not wait endlessly at the same time not to jump to some project in fear of appreciation.
First decide which location you want to take flat then look after the project and your budget if things are ok to you. Nothing wrong in buying now or waiting for couple of months.
I think property prices will keep going litbit down/up for around 1-2 year or so. This will happen for some time and finally the prices will shoot up when the last patch of available land is eaten up in Noida.
I have seen the same pattern in Pune around 2004. Prices were dirt cheap at that time(costly for lot of people at that time also, who thought prices should be less). Builders were offering freebies because of lot of competition similar to wats hapening here. Prices were around 800-1500psft for almost 1-2 years in lot of good areas in Pune like Aundh, Pimple Saudagar etc.
Eventually slowly most of the prime land was eaten up, the prices went up 2-3 times in 1-2 years, around in 2006. And now these are the lowest prices there or the property prices have formed a base around Rs 2600 - 3000psft. Still people are buying there and if they get something around 2600 they feel lucky. So this is all psychological, people tune there brains with time automatically. Something they never bough in Rs. 1500, now they feel lucky to get it in around Rs. 2800 etc. And still there are few who keep crying rates will go down and wait endlessly.
I foresee a similar pattern bound to happen in Noida after around 2 years when most of the prime land is eaten up and most of the projects have sold.
I am not saying that prices will increase 2-3 times from here in Noida, but yeah they increase to a certain level. From my perspective this is the right time to buy, as after 1-2 years the basic cost of building flats will also increase and all prime land near Noida Expressway would be gone.
Sometimes you have to make a decision, go with your analysis and litbit of gut feeling about what you perceive is right or wrong.
And about the different prices between the projects, this difference will always remain. Good projects which have little high prices, will maintain that kind of difference few years later also and the difference might increase as well depending on the location & construction quality. So if its in your means go for good builders, dont look at just too many discounts offered now. You reap tomorrow what you sow today.