There appears no chance for property prices to fall in the near future in any of the metro cities. All the odds are against the buyers; who were expecting a fall in the property prices to own a dream home.
There is no chance; even a slight shadow of chance, for property prices to fall in any of the metros like Bangalore, Delhi, Mumbai or any other similar ones. Real estate experts say that this is impossible. Why? Are the builders reluctant to lower the property prices?
Looking at the large number of unsold properties across the country, a prospective home-buyer may feel that there will be fall of property prices in the near future. Experts say that this is a vain hope as there is no chance for any price correction. In fact, the builders were willing to reduce the property prices but there did not take place an appreciable price correction.
Considering the vast loans the builders have taken from banks and other housing finance companies, any one will wonder why there is no price correction. So to say some of the builders have taken loans even at 25 to 30 % interest from private equity firms. Still, builders were willing to cut down prices due to the weak demand which made their projects remain unsold.
Sky- rocketing property prices always hurt buyers’ sentiment. You might be curious to notice that though the builders are willing to lower the prices, it is the housing finance companies, including banks, which resist the price cut.
This is mainly because they had given loans to some buyers more than 100%; it was before RBI Order that restricted the loan amount to 80% of the total amount, as these have paid the Stamp Duty and other payments. In addition to it some of the financiers have lend even loans to renew their homes as well.
The next persons will be the investors who will exit the realty market if there occurs any sort of price correction. Builders who depend mainly on the investors will not be to develop any projects and this will end- in destruction of real estate as well.
Moreover the price correction will affect those who plan to sell their second or third-hand properties even. So there will not be any resale properties. So reading all things together the story is clear that there will be no price correction soon.