Real Estate: ‘Stick to larger markets, do not experiment’ :: Business Line

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What would you advise home buyers?

Without any doubt, I would advise them not to wait but buy. It is a buyer’s market and they are able to negotiate good deals or get freebies such as waiver of preferred location charges in select projects.

There is also a wide range of homes to choose from. I don’t expect prices to fall any more. We are already seeing prices improving in markets such as Mumbai. So, buyers need not delay their purchases.

Where can they find value?

There is certainly good value available in new homes. A few markets such as Delhi-NCR have seen the resale market also affected due to low demand. But in general, builders are willing to offer good deals if they get large upfront premium, as cash availability is an issue.

What are the areas where one should tread with caution?

In general, tier-2 markets tend to be more volatile than the larger tier-1 markets. In the current environment, the risk-reward balance seems to favour the large and deep markets which have a wider pool of demand.

What are the worries for the near future?

Certainly there is a lot of stress in the market. So, buyers have to be picky about the developer and the project since delays can affect your investment. If it takes longer than four-six months for a recovery, project delays could get worse.