Real estate market in India has seen decline in property price for several month which attracted home buyers and investors towards real estate industry. In last few months there was a rise in demand for property and market trend favored buyers by cut down in registration cost, lowering rate of interest for home loans, builders offering property at attractive price.
That is stage is over and now property buyers can see rise in price of property. For builders liquidity position has eased, the cash flows have improved and they have cleared off existing inventories. The rise in property price depends on market trend and builders. If there is more demand for property, builders will increase the price of property. When checking the market trend and builders history, there was no increase in price for last 15-18 months. Builders had lowered prices when they were in trouble, now there is a good possibility of rise in price.
Builders regained confidence and enthusiasm that stable government will lead to improvement in economic condition. Builders can raise fund either by loans or through equity or QIP. The housing companies have seen growth pick up from the end of February. The growth for LIC housing Finance is mostly from retail finance.
In short, people cannot expect a further fall in property price. Builders will raise property price depending or market trend and demand for property. Buyers can get best from current market price where banks offer loans at affordable rates.
Reference:
The Hindu Business Line
