Home Buyers Keen but Cautious

The residential property market has firmed up in the last few weeks and consumer demand has picked up, say real estate consultants, who claim that buyers (end users) are back because of the confidence in the economy, a resurgent stock market and low interest rates. But there’s a note of caution: if builders start jacking up rates, there will be resistance.

“The residential market, including the premium segment, has rebounded quicker than expected. We are seeing 2007-level prices again and a robust demand for houses in the $1 million range (under Rs 5 crore),’’ said Anuj Puri, chairman of Jones Lang LaSalle Meghraj (JLLM). However, a real estate source said that in the premium segment buyers were not interested in properties priced over Rs 25,000 a sq ft.

According to property consultant Ashok Narang, more than investors, there is a lot of demand from actual users. “Projects in the Parel-Worli belt are doing very well, and in the suburbs, buyers have started flocking to even under-construction projects where bookings are taking place. Earlier, banks were reluctant to lend to buyers for incomplete projects,’’ he said. However, he warned that if prices spurted too fast, the market would slow down once again. Aditi Vijayakar, executive director of Residential Services at Cushman & Wakefield, concurred. “The ideal graph should be gradual,’’ she said.

News Published Under:   Real Estate India |

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