Note: These observations are limited to micro markets around areas with strong employment potential. e.g. Domlur, Whitefields, Sarjapur in Bangalore and Kondapur, Hitec City, KPHB in Hyderabad.
Banks usually allow for 85% of loan of total cost of the project, in the worst of the times they have brought it down to 75%. This broadly is a barometer to call the bottom of a market. In good micro market like above, you can start bidding your time for the right opportunity starting with prices coming down 15% and more. Ideally, if you can land a deal 20% below the earlier peak, don't think too much, just grab it. You never know when the market will turn and such deals will vanish. I see no point waiting endlessly to see the prices go further down and reach 25% from the peak. I think, in India, 20% down in a good micro market is a buy signal.
And, for locations that are away from the business districts and have been boomed on speculation, even if they are down by 70%, don't touch them.
When can you try this prognosis next- I think 2017, but I see June 2014 also producing a scare, there could be some deals if you are constantly on the look out. Homes are sticky to let go for the reseller so you have to be on the look out for months before you spot the deal.
Banks usually allow for 85% of loan of total cost of the project, in the worst of the times they have brought it down to 75%. This broadly is a barometer to call the bottom of a market. In good micro market like above, you can start bidding your time for the right opportunity starting with prices coming down 15% and more. Ideally, if you can land a deal 20% below the earlier peak, don't think too much, just grab it. You never know when the market will turn and such deals will vanish. I see no point waiting endlessly to see the prices go further down and reach 25% from the peak. I think, in India, 20% down in a good micro market is a buy signal.
And, for locations that are away from the business districts and have been boomed on speculation, even if they are down by 70%, don't touch them.
When can you try this prognosis next- I think 2017, but I see June 2014 also producing a scare, there could be some deals if you are constantly on the look out. Homes are sticky to let go for the reseller so you have to be on the look out for months before you spot the deal.
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