October is a festive period in India, when the biggest Hindu festivals such as Diwali and Navratri are celebrated. There are a number of Britons of Indian origins who have ancestral land in India. Should you sell your land in India quick during this festive season?
According to a survey by ASSOCHAM, the property market in India is buried under a mountain of debt. Developers are unable to complete existing projects or finish them on time, which has led to several complications to consumers. The housing sector in India is yet to benefit from the festive atmosphere in the country, despite the Reserve Bank of India’s latest cut in interest rates.
ASSOCHAM collected its data from over 250 builders across India, from Delhi-NCR, Bangalore, Mumbai, Chennai, Pune, Kolkata, Ahmedabad, Hyderabad, Chandigarh and Dehradun. The results of the survey have been quite conclusive. There’s just no demand in the marketplace for new real estate projects. There’s been a distinct lack of buyer confidence. Builders or anyone with properties for sale in India is at a loss.
To be sure, there will always be a demand for homes and apartments in India, given the fact that India has a large population of 1.3 billion, with more than 60% of the population under the age of 35. So there will always be people who will want to move out of their parents’ home or rented accommodations and buy their own home.
Even so, the demand for new real estate launches has come down by 50% to 60% in Delhi and Mumbai and by 40% to 45% in Chennai and Hyderabad.
In Bangalore, real estate activity has basically come to a standstill because of various reasons. First, the demolition drive started by the local administration, where many illegal constructions have been brought down. Then, the agitation over inadequate water supply.
As ASSOCHAM secretary general D S Rawat explains in the survey: “Whatever market is there, it is mainly for the end-users and not for investors, sale has been increased for the smaller units (2 BHK and 3 BHK. Customers are preferably looking for ready to move in property rather than going for under construction property. But not many properties fall in this category."
In fact, the resale market or the secondary market is also down this festive season. There’s been a substantial drop of 20% to 25% in resale property prices. There’s absolutely nothing happening in Delhi and the National Capital Region. Supply is very much in excess of demand, with a number of properties from the unorganised sector flooding the market.
In fact the NCR market has 170,000 unsold apartments, which is 30% of the apartments under construction. There are anywhere from 8 to 10 million workers engaged in construction activities in India who face a horrid future if the market does not pick up soon.
This is grim news for India. But for those who want to buy apartments in India online, there couldn’t be a better time. In Noida, prices have corrected by 30% and in Gurgaon by 25%. Experts predict property prices to decline by 15% to 20% across India by March 2017. This is certainly good news for buyers.