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Economy

Real Estate in Denial

(Whisper) Real Estate Developers think it’s a great time for you to buy a house, because prices have “bottomed out“.

Agreed Rohtas Goel, CMD, Omaxe Group: “The consumers who will book an apartment now will be an intelligent buyer. In the current market situation, the buyer knows that prices have already bottomed out and there is no cushion for further reduction in property rates. The market rumours and low sentiments are putting majority of buyers decision in wait-and-watch mode, I think they will miss the bus.”

Just 7 days later, ET has another article that says current pricing is “unrealistic“.

“It is not that demand has declined,” said Santhosh Kumar, deputy chief executive officer of Jones Lang LaSalle Meghraj, a global real estate consultant and brokerage firm.

“There is a lot of demand in the middle segment but the prices quoted by developers are very high,” Kumar said.

In places like Lucknow and Meerut, he said, realty developers were quoting as much as Rs 40 lakhs for mid segment housing which was quite unrealistic.

“Sales are just not picking up. Compared to last year, the figure has gone down by 50 per cent, even when they are selling at 20-30 per cent below the earlier market prices,” said Punit Saxena of the real estate consultants Axiom Estates.

Hmm. Real estate developers are saying prices have bottomed out. Consultants are saying pricing is unrealistic. What is it?

Whatever it is prices are going to be WAYYYY lower than today. I think.

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