Attractive Prices

Attractive Prices and anxious developers are making it easy for people to buy their Dream Home. Emerging as a buyer's market, the Indian Real Estate sector is witnessing a period of transition. The year 2009 will be a year of opportunity where the buyer will not only be the biggest beneficiary but will also rule the roost. Developers are going all out to give them what they want at newer destinations at prices that have never been so low in the last few years.

Ride High on a Buyer's Market

As the incentives to the sector sink in, the demand for housing will show some strong action, most likely in the second half of the year.

A Prominent develop says, Hyderabad has seen a 30% correction and it is now a buyer's market. there has been a gentle revival in pockets in the city. Developers are trying to weave different combinations to entice the buyer to the market, so we have a string of newly focused affordable housing projects mushrooming all over the city. Many developers have also re-launched their projects with revised pricing. But the prices will have to be rationalised further to bring in larger number of buyers.

Market Wisdom

विल थे रियल इस्टेट प्रिस फाल फुर्थेर? व्हेन विल थे रेविवल इन रियल इस्टेट सेक्टर बेगिन? ठेस अरे थे के क़ुएस्तिओन्स ठाट एवेर्य्बोद्य वांट्स अन्स्वेर्स फॉर. थे बुयेर इस वेटिंग फॉर प्रिक्स तो फाल फुर्थेर, सो ठाट हे माय हवे अ बेत्टर बर्गेन व्हिले पुर्चासिंग हिस लॉन्ग चेरिशेद हाउस.

थे के इस्सुए इन थे पुर्चासे ऑफ़ अ हाउस इस थे अफ्फोर्दाबिलिटी फैक्टर, व्हिच देपेंड्स ओं बोथ थे प्रिस ऑफ़ प्रोपर्टी एंड थे रेट ऑफ़ फिनान्सिंग. थे रेअल्टी प्रिक्स हवे फल्लें बी २०% तो ३०% इन थे लास्ट सिक्स मोंथ्स. बेसिदेस ठाट, मानी रेअल्टी फिर्म्स हवे लौन्चेद अफ्फोर्दाब्ले हौसेस अत सुब्स्तन्तिअल दिस्कौंत ओवर ठिर एअर्लिएर प्रोदुक्ट्स इन थे समे विसिनिटी.

More Cuts in Home Loan Rates Expected

At a time when the equality markets are being bombarded with bad news, borrowers have been having a good time. The interest rates have been coming down steadily and more banks have come out with homeloan interest rate cuts.

As a result, home loans of most banks have slipped below the 11 percent level and indications are that the stage is set for the next round of rate cuts.

New incentivised schemes for Affordable housing on the Anvil

In its forthcoming mid-term appraisal, the Planning Commission is likely to unveil couple of new incentivised schemes for real estate sector so that it acquires a priority status at times of meltdown and provide for affordable housing.

A Whole New Set of Procedures

In the latest development the Reserve Bank of India's (RBI) draft guidelines, on the classification of commercial real estate exposure of banks, may provide some relief on loans provided for the acquisition of unites in Special Economic Zones (SEZs). The RBI revised its norms on real estate exposure where it included loans extended against the security of future rent receivables from commercial real estate exposure .

Loans extended by banks to hotels and hospitals my no longer be treated as commercial real exposure.

Encouraging for the Sector

What is even more encouraging for the sector and the buyer is expected decline in the interest rates in the coming months. As bankers feel inflation may fall below the three percent level by March 2009, Interest rates on home loans will also come down to around seven percent.