High supply in Indian realty: Should you buy or wait?

Has the slow real estate market and lot of supply confused you? Is it hindering your decision of buying property? The scenario is the same in almost all metropolitan cities across India. Should we buy or wait for some more time – is what most of us are unable to decide.

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To advise, Magicbricks organised a GuruTalk, a live chat session with R Chalapathi Rao, executive vice president, TREDA (Telangana Real Estate Developers Association).

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Rao says, “Naturally high supply is in anticipation of high demand.” When inventory is lying vacant in the market he suggests, “Give more preference to the right property. Buying a house in the location of your choice and suitable to your needs should be the first priority. Since new project launches are delayed the chances of prices dropping are remote.”

“Going forward the prices will increase, especially in markets like Hyderabad. However, certain builders who cannot hold stock may offer low prices now,” adds Rao.

So, where is the high supply of projects? “Often people like to buy property in places where they have their relatives and have spent their childhood. People coming from other parts of the country may like to buy near their place of employment,” explained Rao.

Talking mainly about the Hyderabad market, Rao said, “The west part of Hyderabad is seeing high demand and supply.”West is best” seems to be the tagline. Since the number of IT hubs are more here, so is employment generation and thus, the supply is also high here. North-East is giving regular supply of moderately priced properties.”

Is it advisable to buy a ready-to-move-in apartment? Rao replied, “It is good to buy ready property. As per the National Housing Bank’s Residex, prices in Hyderabad remained at the same level as in 2007, while in many other cities they had shot up 1.5-2.5 times. The market is now waiting for a “feel good factor” such as more companies announcing new MFT services in Hyderabad. So it is better to buy now.”

Is it fruitful to delay a property purchase in this scenario? Rao informed, “Since prices have remained neutral since 2007, it may be risky to delay more, particularly if you want to own and not trade or invest.”

For those looking at selling property, Rao suggests, “It depends on the location. Prices will appreciate if the property is located at the right location. But if you think the selling potential of the property is unable to fetch good profits, sell it and buy a good property at the present price and take benefit of the higher appreciation”.

To clear your doubts relating to real estate market and help in making a confident decision, Magicbricks is constantly organising property discussions with various experts in the market on the topic – Buy today or wait? Click to know more

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