A recovery in the economy will soon be reflected in the housing scene
The last six months saw an unprecedented shift in equations not just in the real estate segment but in the overall market scenario, thanks to the global meltdown. The real estate sector faced a state of virtual inactivity with buyers waiting for the market to bottom out completely.
However, the elections and the recent stunning show of the bulls in the stock market indicates that the trend will no more be downward and the market has already bottomed out. This portends a reversal of fortunes for those who are still wary of casting their dice and making a deal, especially in real estate.
For, a recovery in the economy will soon be reflected in the housing scene, making those who chose to wait to make that purchase in the expectation of a further fall, lose in the bargain. While the market may not register sharp increases, even marginal increases which are bound to happen soon once the revival trend stabilises, will make a difference in the overall cost.
While the current market certainly has no room for speculators, it is ripe for investors and first-time buyers to take the plunge. First- time buyers perhaps never had it so good in terms of bargaining power and would be wise to move in when the current is still in their favour. Likewise, investors could actively begin looking for good investments at this point of time as the returns could be sizeable after a period.
With many developers postponing fresh launches, the currently available units are mostly in various stages of completion. The number of completed apartment units is much more than they have been for a long time, allowing first-time buyers to not only make a deal that tilts the balance in their favour but enable them to move into the unit straight away.
Besides, the number of budget flats and low-cost housing too has increased, widening the base of selection. Again, for the investor the choice is more, permitting the execution of a well-thought-out deal.
In short, the message for both is to grab the opportunity before the market turns.
(The author is CEO, Propmart, an end-to-end property solution provider)