Advantage buyers, as realtors look to reduce inventory

For the last four years, the demand in residential real estate market has been sluggish, which has caused the unsold inventory levels to go up in some of the key Indian geographies. Supply-demand mismatch in terms of price and configurations has been the main reason for the rise in inventory levels. 

However, 2016 began on a sunny note for developers. The residential real estate market has shown a visible comeback in the first quarter. There has been a six-fold increase in launches of the affordable housing projects, as developers predicted greater demand in this highly price-sensitive segment. Factors have now transpired to make residential real estate a buyers’ market that gives buyers the upper hand. They have a lot of options to choose from, with the added benefit of flexible rates and attractive payment plans.

Remember that in a buyers’ market, it is the buyer who has the power. If a home has been on the market for several weeks or months, it suggests that the seller is hoping to sell it as soon as possible. 

In such a situation, it makes sense to ask the seller for add-ons such as additional furniture or fixtures, apart from a heavy discount on the listed price. But the lure of discounts and flexible payment plans that currently define the market should not obscure a developer’s track-record, on-ground construction activity on projects and the market’s response to these and previous projects. 

The initial choice should be made based on developer’s reputation, track record, project construction activity at site and locational advantages of the project.

Both the RBI and the central government have taken certain key steps to revive the real estate market. Implementation of Real Estate Regulatory Act will ensure transparency in the real estate transactions, which will help safeguard the interests of buyers. These factors have infused renewed positive sentiment in the market, and will ultimately result in boosting demand for residential properties.