Its Not been a long time. Just 5 years and the real estate in almost all parts of the country and especially in metros like Mumbai, Pune, Delhi & Bangalore shot up by 3 to 5 times. let me say it again - 3 to 5 times. What kind of a growth it is ? what is the base ? and how do even people can think of buying at such rates.
What i remember a while ago used to be 2k to 3k per sq feet and to be more precise on a carpet area. Now the same apartments costs 6k to 10k and sold on the measure of super built up (which is 35 % to 40 % less to carpet area). It was a win win situation for developers/Investors and have made lakhs & crores of rupees as profit by multiplying the cost and reducing the living area. Banks on the other hand raised Interest rates.
All the above factors makes a common man to shy away from buying an apartment.
Developers were even considering to sell flats on super duper build up (around 50% of carpet area), but i guess they have realized Win Win and again a win situation may make it lose.Off course there is a demand and the demand is based on the earnings. Common sense right. Ideal price of a property a person can buy is 5 to 6 years of his income. Now, what percentage of our population makes more than 1 cr in 5 years ?
Someone who makes a 6 digit salary (considered to be most decent earning) finds it beyond his/her reach. And by the way, we are considering rates in suburbs and not even getting into Metros.
People have started wondering who are they building houses for ?
Real estate has become so unreal that People can not and do not want to digest it anymore.
Its been a saying from last 4 to 10 years that " Don't delay buying a Property or else you will end up paying 40 % more for the same property in a years time " AND now its the time to say " Sell your property now with acceptable price or else you will end up getting 40 % less in next 4 to 10 months.
