Wednesday 10 April 2013

Real Estate in Ahmedabad : "Old wine in New Bottle"

                       Every alternate person in ahmedabad you will find talking about 'Mandi' (slowdown) in real estate market. Everyone want to sell their property just to keep their money secure and buy in deep market. Property seems like commodity here. Each has different opinion here, i.e.: It will crash down. still 1 year more for slowdown. now we will never get the same pick in the market. There is not real buyer it is all of investor. 

                      Developers in the city has slowdown new project launch to narrow demand supply gap. New offering seems like "Old wine in New Bottle". Per Sq.Yd rate... Including all Cost... Starting from... Amenities... Pre-Launch Offers... are on the top of their advertisements. Affordable word has secured place in the eye of marketers, They try to convince the buyer about affordability of their offerings. It is very much hard to guess intrinsic value of property in current market.

                      Teaser campaign - Pre-Launch - Last chance - Only for few - Limited Period offer - Festive season offer ... this words in the communication have no value. Buyers become smart they checks after while over whether the offer was real or not. On table discount is secret between buyer and seller. Seller gives best offer only after confirming buyer is real till then they don't open the cards.

                     What is real scenario?  Is Ahmedabad's market is Investor-driven market? Will it go deep from current state? Will smaller companies  be able to survive? Will this market again go in the hand of few developers with strong capital base? Analysts gives the figures of past years, obviously seems attracting. but What is real scenario?

                      Investor's are evaluating all the offers but still stay away from market for time being(for how long . it's a question mark?, Real users are the real buyers. Brokers trying hard to get in real buyers. Investors/Sellers trying to manage fund from alternate source.  Real buyer get's good deal but they just keep it secret so that they get the benefit of market  price. Buyer's still can not judge,  good to buy now or 6 months later or a year later. Those who want to go for home loan's demanding low upfront payment/margin money. Lower ticket size is still in demand but buyers are not ready to negotiate with the basic requirement i.e.: usable area, location, transportation, amenities, parking space etc...

                    There's a definite sign of slowdown. Other market's also not supporting liquidity in the market. Developers using alternate source of money to clear backlogs. They now are very much attentive about the need based offerings for the future.

                    For Buyer's

Should they invest in current market?
                    Yes, It's a good time to get good deal till the time of equilibrium(less gap in demand-supply) in Ahmedabad market. This year we will see highest possession of property of those projects launched in past three years. this will also open up another supply of ready to move properties.

2 comments:

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  2. Ahmedabad is fast developing and booming city in real estate sector. The Real estate companies works on various projects. Khyati Realities Limited has large number of projects coming up where villas, lavish flats, apartments etc, are being build all of which are aimed to be equipped with world-class amenities.
    Property Ahmedabad

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