In last 2 months, there were lot of things happened in the real estate market. Due to office engagements and family vacations, apologize I could not post any new information in the blog. Here are my thoughts,
- The high court has vacated its blanket ban on registering unapproved properties. After endless adjournments, the govt also submitted a proposal in regularizing unapproved properties. I think this will help to change the market sentiment and we can see broad sales activity happen in the next few months. What ever the case may be, I always bet and prefer only approved ones by CMDA or DTCP authorities. This gives peace, trust and safety in longer run. Meantime, we should also care for our environment and stop buying plots, which were converted from fertile agricultural lands. Only if we show our inclination in not buying those land, the supply will reduce, in turn the nature will be protected.
- Second point is on the govt guideline value correction. The guideline value revision, is something the market is waiting for a long time, as last time, the prices were increased exorbitantly. For better livelihood, people were anticipating a reasonable revision this time for govt. The govt also responded, though late, with a 33% downward correction in the value. But unexpectedly, it also touched the registration charges and increased to a higher percentage. So net to net, the guideline value revision did not provide breather to the market. The concerned minister has promised to reduce the charges in future, but i guess it is unlikely to happen. The govt has focused only on revenue generation side to their treasury, but failed to meet the market expectation. So, I hope the same trend, flat market will continue for coming years.
- Its good time to negotiate and buy properties, am sure builders does not have a choice except lowering their prices. A newly built apartment, before construction, near my house was quoted around Rs. 7500/ Sqft. But due to sluggish demand, one of my friends bought a flat last week, a completed one for just Rs. 5200/ Sq ft, with 2k+ discount. So, good time to buy.
- Oragadam and Red hills is getting lot of traction and looks promising as a investment point of view. I will come up with a blog post on that topic soon.