Home buyers alert! There might be a correction in residential real estate prices by up to 5 percent over the next 2-3 quarters.
If you are on the verge of investing money in a property, it is just the right time. As per a recent report by CARE ratings, a meaningful correction in housing prices is on the cards in the coming months. The correction in real estate prices is expected to spur sales, thereby bringing some relief to the developers.
Here are some of the key findings of the CARE rating agency’s report that every potential home buyer must be aware:
- It is affordable and mid-segment housing demand from end-users are expected to drive the residential real estate market going forward.
- Prices are expected to remain in a lowering trajectory over the next three to four quarters as major markets have loads of inventory to clear off.
- Housing inventory in peripheral markets of major cities seemed to have peaked and the buyer is seemingly not ready to buy properties at escalated prices and that too, in far-distant locations.
- The growth in the housing sector will be expected to be led by the southern region followed by northern and western region respectively in terms of project completion, Money Control reported.
- Sales have bounced back in the financial year 2019 after facing headwinds in the financial year 2018 due to the implementation of RERA, GST and steady addition of high-demand affordable housing units across tier-1 and tier-2 /3 cities.
- Total leasable commercial real estate is expected to touch 600 million square feet by the end of 2019 as more projects near completion, especially in Bengaluru, Hyderabad, Mumbai Region, and Kolkata markets.
- Most companies with leasing business reported double-digit growth during H1FY19 over H1FY18 owing to growth in lease due to the addition of leasable space and an increase in rents.
- The total co-working space inventory across the major cities is nearly 7 million square feet and is expected to grow to 15 million square feet over the next 2 years with Bengaluru, Mumbai, Pune, Chennai, Hyderabad and Delhi continuing to be the key markets for co-works’ space.
However, the rating agency did mention that it is still early to call it a revival in buying sentiment.