 |
-
News by Month
-
News by Category
Speculative buying in real estate declines
A report on real estate by Ernst & Young and Ficci states that speculative buying in the real estate market in leading cities is on the decline and currently genuine end-users account for nearly 80 per cent of total property sale, The report said, “the last three to four quarters have witnessed a significant shift in the buyers’ profile with real estate prices reaching a level where speculators\investors cannot realise significant returns.” Speculators used to account for 30 to 40 per cent of total sales earlier, according to the report.
The report has divided non-genuine buyers between speculators and long term investors. The report defines a speculator as one who would sell the real estate within 18 months after purchase while long term investors tend to sell their property after three to five years. While the speculative buying at present is estimated to account for five per cent of total sales, the buying by long term investors, who have been found to be active in premium segment, currently account for about 15 per cent of the sales.
News Published Under: Real Estate India | No Comments »