| Home loan rates in India have started dropping, real | | | | lowering of demand due to interest rate hikes |
| estate prices have been soft for 9 or so months now | | | | 4. Land titles remain a major issue in India, except in |
| - you must be wondering whether this is the right time | | | | areas approved by local authorities. With large amount |
| to buy that house or apartment/flat in India. Here are | | | | of private equity money seeking large land deals, price |
| some thoughts for you to keep in mind: | | | | of large tracts of 'clean titled' land and apartments/flats |
| 1. It is recognized that there is a shortage of dwelling | | | | built on them keeps going up. However, unless demand |
| units in India. Sustained lowering in interest rates can | | | | for such properties/ complexes in outer areas firm up, |
| reignite demand and therefore raise prices again | | | | one can expect a flattening of prices here |
| 2. Price softening has happened primarily in outer | | | | 5. Significant number of apartments/flats in such large |
| areas of metros, while prices within the main cities like | | | | complexes has been bought by NRIs and investors |
| Delhi, Mumbai, Bangalore and Chennai have remained | | | | from outside the city, based on promising brochures. |
| strong. In fact, prices in well known residential areas in | | | | Unless you are able to assess the land and builder |
| these cities are now way higher than what most | | | | quality yourself, you are always at risk of being led |
| residents in the city can afford. This has been primarily | | | | astray by these promises. |
| due to shortage of land in such localities while demand | | | | As ever, the best way to buy property in India is to |
| has kept rising with growing wealth disparity in India | | | | focus on areas approved by the local authorities and |
| 3. Outer areas of metros suffer from lack of | | | | within accessible distance to key city centres. It will be |
| infrastructure and security making it less attractive for | | | | a long time before India has road and metro |
| people to live in these locations. Therefore, a significant | | | | infrastructure to enable people to live comfortably in |
| portion of money that has gone into such locations has | | | | more distant suburbs. |
| been investor money. Such locations are easily hurt by | | | | |