Its all around the news that hyd real estate bubble is going to burst by march. Anarock published there are around 58000 unsold inventory in hyd (https://www.deccanchronicle.com/business/in-other-news/031221/hyderabad-real-estate-market-may-collapse-by-march.html) . Whats your opinion on this ? Are the prices going to come down ? Is it wrong time to purchase flat in under construction projects ? If the sales come down, would there be risk of execution on time ?
Only go for RERA projects and on normal plan, don't go with projects running one time payment options. Some big builders are also running one time payment schemes and they could complete the projects but as a thumb rule avoid those projects. I foresee - Huge risk of many builders running one time payment schemes not completing the projects. Look around and see why the top builders have not been announcing many projects in the past 1 year. Definitely, there is glut in the market. Market crash in March 2021 - I suspect. It would take atleast 12-18 months more for ppl to realize some of these projects will be non-starters and they have been misled. Ideally, at that point of time, I see big builders opening projects to lure back genuine buyers. For living, you can buy a good branded project unit even now. Don't expect any price returns in the next 24 months. Prices might not come down in branded builder projects but may not increase too - resulting in a time correction. Lack of price protection plans indicate how strong the demand in the market is today - expect the craziness to last for 1 more year.
I see vasavi atlantis got rera recently and expected completion date is 07-2028. 7 years is really a long period. All the builders might follow the same path. To protect them from risk, may increase the timeline so that sales can be picked after few years.
Its all around the news that hyd real estate bubble is going to burst by march. Anarock published there are around 58000 unsold inventory in hyd (https://www.deccanchronicle.com/business/in-other-news/031221/hyderabad-real-estate-market-may-collapse-by-march.html) . Whats your opinion on this ? Are the prices going to come down ? Is it wrong time to purchase flat in under construction projects ? If the sales come down, would there be risk of execution on time ?
ReplyDeleteThe question is for end use and not for investment
DeleteOnly go for RERA projects and on normal plan, don't go with projects running one time payment options. Some big builders are also running one time payment schemes and they could complete the projects but as a thumb rule avoid those projects. I foresee - Huge risk of many builders running one time payment schemes not completing the projects. Look around and see why the top builders have not been announcing many projects in the past 1 year. Definitely, there is glut in the market. Market crash in March 2021 - I suspect. It would take atleast 12-18 months more for ppl to realize some of these projects will be non-starters and they have been misled. Ideally, at that point of time, I see big builders opening projects to lure back genuine buyers. For living, you can buy a good branded project unit even now. Don't expect any price returns in the next 24 months. Prices might not come down in branded builder projects but may not increase too - resulting in a time correction. Lack of price protection plans indicate how strong the demand in the market is today - expect the craziness to last for 1 more year.
DeleteI see vasavi atlantis got rera recently and expected completion date is 07-2028. 7 years is really a long period. All the builders might follow the same path. To protect them from risk, may increase the timeline so that sales can be picked after few years.
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