Real estate experts in Delhi and satellite towns of Noida and Gurgaon have confirmed that property prices are sliding. So, if you want to get the best property deals, this is the time.
Though on record, the brokers in Gurgaon object to any suggestion that property is becoming cheaper.
“Prices of plots have fallen. Plots that were sold for Rs 55,000-50,000 per yard one year ago can be bought now at Rs 45,000,” a property broker from Gurgaon said on the condition of anonymity. These plots are believed to be in and around Sushant Lok and Gold Souk.
A 22 per cent drop in the price of plots in a prime location in Gurgaon seems to be good news but then comes the fine print; two-third of the payment has to be in black.
Transactions like this ensure that listed prices for property are grossly under-valued. On paper, the plot that the brokers are offering is 10 lakhs but in reality, it will sell for nearly double that amount.
If one is looking for a fancy apartment and desires a clean-cut transaction, the swanky penthouse he/she always wanted may not be out of reach. Brokers admit there has been over-construction. They advice not to buy a new premium apartment cause there are plenty available for re-sale in the same category that are 60 per cent cheaper.
On being asked whether prices of luxury apartments have fallen, the dealer said: “You must have heard of Central Park. Three years ago their rate was Rs 2150 per sq feet but now they have launched Central park II. The rate here is 5700 per sq feet which is around three times. Today they are selling for Rs 3500 per sq feet instead of Rs 5700 per sq feet.”
In Noida too, prices have fallen by an average of 15 per cent. So, if one is ready to drive a hard bargain, good business is on thee offing. Plots sold for Rs 40 lakhs three months ago can be bought for Rs 38 lakh now.
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So here’s the bottom line. The listed prices for new houses are inflated. Whether it’s a flat one is buying directly from a builder or relying on a broker. A thorough research before deciding on which plot to buy can definitely help save lot of money.
2nd November 2008.
There has been a slow down in the economy and most of the people in industry and government are pressing the panic button when actually this is just a period when corrections are coming into place - whether it be a correction in the realestate prices or agricultural commodities. One should remember that when realestate prices witnessed a 330% hike in Gurgaon nobody made any noise - it was only the people who could not afford felt the pinch - now that the prices are falling its actually not falling but a price correction is being done. with Realtors increasing the prices of property by feigning that there is less supply prices went up and this was an artificial price hike which saw unheard of prices for property. Actual situation has been brought to light now as we hear that there are many projects that have no buyers and the realestate guys are offering attractive freebies …which could infact be the same price as teh flat …Example : A merc being offered as a freebie with the property certainly reveals the desperation of the real estate guys…. similarly prices of everything - including food grains had risen sometime back and now with their prices falling-its actually a correction…no need to despair. we all need to understand one thing that we should be cautious while spending and only buy essential stuff. There is no need to spend on unnecessary stuff just because its attractive and available in th retail stores that have mushroomed all over the country.