There are many British citizens of Indian heritage who have property in India. If you’re planning to sell your land in India quickly, you would be interested in what we have to tell you about the current state of the Indian housing market.
For a vast majority of Indians, buying real estate is one of the safest investments possible, especially in a scenario where the stock markets cannot be trusted and interest rates on bank deposits get lower every year. India had a real estate boom in the late 1980s and the 1990s, where real estate prices went up by 10 times or more, across the country.
This was followed by a period of recession and the correction in the bear market was over 75 percent. We are witnessing something similar in the Indian real estate sector. The period from 2002 to 2013 saw a lot of people make extraordinary money in real estate in India. In some cities such as Gurgaon and Bangalore, prices appreciated by 10 to 12 times during this time.
So this led to a belief among real estate investors in India that the property market in the country would grow regardless of the situation in the rest of the economy. But that notion proved to be false. Bangalore, Pune and Hyderabad were the cities that witnessed high growth in the period from 2002 to 2013. But now they have more or less stabilized and become mature markets.
The real estate sector in India is in a prolonged correction phase and this has caused a lot of frustration among real estate developers in the country, who had become accustomed to double digit growths year after year.
Now, though, it is a buyer’s market in India, where buyers have all the power. Indeed, it has become a buyer’s market because there are fewer people buying residential properties in India.
Property prices are still kept artificially high by many builders despite the fact that there are no takers for their properties. Buyers are much smarter than before, though, and have chosen to play the waiting game. Eventually, as buyers wait for real estate process to become reasonable, builders and home sellers will be forced to cut prices.
In India, real estate prices differ from one city to another. As the interest rates get lower and the incomes get higher, homes are expected to become more affordable for the middle class buyer. Home loan rates have come down by 50 to 75 basis points over the last few weeks, for example.
The rental yield across the country has been declining as well. Rents are not keeping up pace with the rise in property prices – as the rental market is based on the real economy while the property market is largely built on speculation in India. This is expected to have a negative effect on property prices across the country.
If you are looking to sell your property in India fast, it is important you should set a realistic price for it. There is certainly a lot of demand for homes and apartments in India, but only if they are available at a reasonable price.