There is good news for prospective home buyers.

Jaypee sports city News:- There is good news for prospective home buyers. There has been a marginal price correction in the Indian property market. The International Monetary Fund recently launched a data series on global housing prices. As per news reports, the data suggests that in India, home prices fell the most among the 52 nations in the list. The drop recorded was in single digits. The National Housing Bank Index (Residex) which tracks the price movement in the country corroborates the trend to some extent. The Residex showed that of the 26 cities it tracks currently, 13 registered marginal price decline during the period between January and March 2014.Reasons for the correctionThe Indian real estate market has been going through turmoil. Real estate prices in several Indian metros have crossed sustainable limits during the period 2002 to 2008. However, prices for residential real estate have been growing exponentially since 2005.The increasing residential asset prices have led to a potential bubble, causing stagnation over the past two to three quarters. Subsequently, high interest rates and poor sales have hit the buying and investment sentiment in the country. And developers are now sitting on a huge pile of unsold inventory. In addition to these, challenges such as high cost of land and labour have added to the overall burden.The outcomeNew launches in the residential sector dwindled in 2013 as developers started looking at disposing of existing stocks to generate cash flows. Prices too corrected in some key micro-markets.According to international property consultant Jones Lang LaSalle India, in certain key markets, the average price of units in new launches has decreased by 15% to 25% and developers are trying to lure buyers with attractive festive offers.The trend will be even more visible as we progress into the festival season. These may range from offering freebies to offering flexi payment plans such as 60:20:20 or 70:30.A few mid-sized development firms are planning to launch affordable and mid-income projects in the next few months.Opportunities aheadDevelopment firms are now aiming to reduce the number of unsold units across their projects. In an effort to do so, they are willing to share the burden with potential buyers in the market. While developers are under pressure to sell, buyers have been facing problems on account of high rate of retail inflation and high interest rates. As monetary policy is not in control of home buyers, the two groups – developers and buyers, can help each other and, in a way, the market, in the longer run.While developers can bring selective correction, buyers can enter the market at reasonably affordable rates. Marginal correction in prices and huge inventory pile-up will give buyers an opportunity to enter the market at lower rates.What should be done?It is likely that the period of freebies and discounts will continue for the next three to four months before prices firm up again. So if you are a first time buyer, enter the market now and go for a property that fulfills your criteria and fits your budget.You also need to locate the region of your interest. If you can wait for two to three years before you get the possession of your property, look at new launches. Since the wait is long, it is wise to opt for a construction-linked payment plan for a newly launched project. And take a home loan to fund your investment.Alternatively, look for secondary sales in projects that are nearing completion. Chances are that an early investor will try and move out of the project after making some profit. You might still get a lower rate compared to what the company may be offering. Many resale properties held by such investors are priced cheaper than what developers ask for.Negotiate hard on the quoted price. Ask for more discounts such as waivers on preferential location charges, club membership fee and parking charges if buying directly from the developer. for more info about resale property in noida & greater noida visit jaypee sports city projects.

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This News Powered By Hindustan Times (Delhi) 20-09-2014