Property expos are common today. There was one that recently concluded in Bangalo, which had a wide variety of projects on display — from apartments and villas to lake-facing condos and centrally cooled towers. What was common across the spectrum, though, was the optimism on valuation. Not a single property was priced below Rs. 1 crore.
Clearly, what was once a fine line separating the wealthy from the less affluent has lost its relevance today. Crorepatis are passé. Billionaires are in. Unfortunately, what the developers have not realised is that not all of India has turned crorepati yet. Little wonder then, that property sales are in the dumps. New projects are springing up, but buyers are limited. What’s even more astounding is that developers seem to believe their marketing prowess will help them lure buyers with new, state-of-the-art amenities, design, etc.
Consider this, a third-rung developer is selling apartments in an area not connected by proper roads to the main arterial road, for about a 50 per cent premium over older but well-constructed and well laid-out residences by top-notch developers on the main road. All for the promise of a ‘new’ living experience. And these are only promises, as most projects aren’t ready for possession.
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Interestingly, Valentine’s Day saw several offers by developers, including freebies like a holiday to an international destination. Such lures make one wonder how much froth there is in the pricing.
Given the trend in pricing, it’s time for buyers, even those looking only to buy new homes, to take a good look at the secondary market for a reality check on valuations.
Remember, what’s new today will be old tomorrow. Your new investment had better be worth its weight to hold its value in the marketplace tomorrow.
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Former Editor of Outlook Business and Executive Editor of NDTV Profit, the writer is a personal finance expert.
Mail him at propertyplus@ thehindu.co.in