Is The Time Ripe For NCR Buyers To Book Their Dream Homes?

It could be the impact of a piling unsold inventory and an increasing disinterest of investors in the real estate market that contributed to slowdown in the real estate sector. But, softening of home prices in the National Capital Region is reason for home buyers to cheer up. 

According to the second quarter report by PropTiger.com's Datalabs division, Realty Decoder-Q2'FY16, property prices in Noida went down by 1.8 per cent in the past one year. While property prices in Gurgaon have remained stable, they have gone down in Bhiwadi by 0.1 per cent. Sohna is the only area in the NCR which has shown a price appreciation of over six per cent.

More discounts?

The report shows the NCR has about 140,000 units in its unsold inventory, with ready-to-move-in homes forming about 1. 5 per cent of it.  While the overall inventory overhang of Gurgaon is 54 months, it is at 59 months in Noida. Noida also holds the dubious distinction of having the most-aged unsold inventory. Around 33 per cent of Noida inventory is over three years old. In , 22 per cent of the unsold inventory belongs to the over three-year-old category.

In general, developers are most comfortable if they can sell around 60 per cent of the building during construction stages. Experts say that while the average price reductions are lower, case-to-case discounts are much higher for genuine home buyers. Developers might also inch up festive discounts in the third quarter or coming few weeks to push sales.

Right time to purchase?

With reduced prices and a 50-basis point interest rate cut by the Reserve Bank of India, the time is ripe for home buyers to take the plunge. Gurgaon's circle rates were also kept steady to keep further price rise under check.

The authorities, too, are pushing for increased home sales, as they have slashed land conversion rate to 10 per cent after approving the mixed land use policy. It was earlier at 25 per cent. This, too, might have a positive impact on the end-prices of property in NCR.

Why is it a good time to buy in NCR?

• Average prices reducing or stable
• Developers willing to give discounts
• Large unsold inventory presents wide-range of choices
• Interest rate cuts and possible softening of loan rates