It's time to hunt for your dream home

Year 2014 was the worst for developers across the country. Delhi saw the lowest sales in a decade and Mumbai in five years. The situation has not changed much in 2015 so far. Customers have been postponing a decision to buy a house due to high interest rates, rising property prices, stagnating income and late deliveries of projects.

Prices, however, have not taken a breather. Last year, property prices in Mumbai were up 10 per cent, Bengaluru saw a rise of seven per cent, and the worst-hit National Capital Region (NCR) witnessed a three per cent growth, according to property consultancy firm Knight Frank.

“Properties below Rs 5 crore in Mumbai and Delhi and those below Rs 3 crore in other parts of India will neither see any correction nor will developers be willing to negotiate rates,” said Om Ahuja, chief executive officer  (residential services) at Jones Lang LaSalle.

While experts say in luxury properties, developers are ready to sit across the table and willing to settle at a lower price, some also suggest builders are hard-pressed for funds and might provide some discounts rather than turning away a customer. Nevertheless, many developers are providing different offers and giving flexible payment options as well.

“This is the best time to buy a property. Developers might not discount price but are willing to accept payment for the on customer’ convenience,” said Mudassir Zaidi, national director (residential), at Knight Frank India. There could be other charges that builders would be willing to forego, such as premium for preferred location or floor. Some might even offer free stamp duty and registration, Zaidi added.

Realtors have also been offering schemes wherein the customer pays 20 per cent upfront and 80 per cent on possession. There are also offers where developers bear the interest on a home loan for the initial two-three years while the project is under construction. Some are even willing to write a cheque equal to the interest a bank is charging the customer each month. However, in such schemes, buyers need to be careful of the fine print.

While sales are expected to pick up as interest rates fall, and increments at jobs normalise, such a scenario is some time away. While experts don’t expect significant movement in prices this year, as the market picks up, the schemes and offers could disappear. “We have seen in the past that when equity markets rise, people start parking profits from stocks in realty,” said Ahuja.

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About Us 

MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.