The year gone by has been one that witnessed the investors take a back seat and the end users becoming more active. However, at the same time there were a large number of prospective buyers in the market who were holding back their purchases with the hope for a correction in the market.
A recent poll conducted by Magicbricks.com indicated a similar sentiment among the home buyers. The poll revealed that 43 per cent of the respondents said they would buy a house in 2014 only if there is a price correction in the market.
With delayed deliveries and mounting residential stock across cities in the country, even developers were compelled to slash prices in 2013. But will this trend continue in to the new year? Developers are keen to sell off the built up inventory and they might compromise a bit on the pricing in order to do so.
While this 43 per cent of the respondents may also include investors who have been following the wait and watch policy, there were another 30 per cent of the respondents who said they would definitely buy a home in 2014 for self use. This shows that the genuine end user is keen to enter the market in 2014. Prices have already dropped in several places and this seems to be right time for end users. Buying is expected to resume in good numbers in 2014. Home buyers have been waiting for prices to drop to go ahead with their property purchases. In addition, developers would be willing to sell off the unsold inventory in the first part of the year itself. Buying in the first quarter would be advisable as post elections prices are expected to rise.
Nearly 20 per cent of the respondents also claimed that they will not be buying a house in 2014 while around 7 per cent said that they would consider buying a house now that the home loan rates have been reduced.
Thus, more than 75 per cent of the respondents seemed positive about buying a house in 2014 if some underlying conditions turn out to be favourable. However, this surely is an indication of a positive sentiment in the market. With prices softening and few banks already announcing a cut in their home loan rates, the developer community can hope for a better sales volume this year.
Alok Kumar Upadhayay