Banfill96
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Demand for residential property is very genuine - 2008/08/30 09:49
While the media reports a property slowdown, the ground realities are very different. Buying price as well as rentals of residential and commercial properties in India has gone up. Genuine buyers are unsure whether to go ahead and book their Kerala apartments or wait for property prices to come down.
The slowdown is a result of the interest rates which is a temporary deterrent. While Some industry experts prediction that interest rates on housing loans may go up further, others avers that rates would remain stable as inflation comes under control and foreign investment in Indian real estate balances out.
Looking in perspective, the rise in real estate prices in India the past couple of years, the demand for residential property is very genuine, coming from rising family incomes and growing number of nuclear families.
The demand for office spaces in cities far outstrips supply. The growing outsourcing business is expected to foster further demand in the future. Growing commerce is further stimulating the hospitality industry similarly, the retail industry is a poised for a major leap, and real estate developers are hard pressed to meet their targets for these high-value customers.
The current land crunch would necessitate a spiraling of prices, so the price appreciation cannot be interpreted as temporary. Therefore, if the prevailing interest rates are here to stay and a price fall cannot be predicted for sure, a genuine buyer can definitely negotiate a good deal at this point of time.
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