Housing Numbers Point to an Unusually Strong Buyer’s Market
Recent data shows India’s real estate market is shifting in favor of buyers, with rising inventory, slowing price growth, and stable mortgage rates. However, experts warn that hidden challenges could offset these advantages.
Why This Is a Buyer’s Market
Reports from Knight Frank and Anarock reveal a 15-20% increase in unsold homes across major cities like Mumbai, Bengaluru, and Delhi-NCR. Key drivers include:
- Surge in New Supply: Developers launched record projects post-pandemic, leading to a supply glut.
- Moderate Price Growth: Some micro-markets report 5-10% price corrections.
- Stable but Higher Mortgage Rates: Home loan rates hover around 8.5%, deterring some buyers.
With more options and less competition, buyers now have greater negotiation power—sellers are offering discounts, waived charges, and free upgrades.
The Catch: Affordability Still a Major Hurdle
Despite favorable conditions, high base prices in prime areas remain a barrier. For example:
- A 2BHK in Mumbai’s suburbs costs ~₹1.5 crore—unaffordable for most middle-class buyers.
- EMIs on a ₹50 lakh loan are 10-15% higher than during pandemic-era rate lows.
Ramesh Nair, CEO of Colliers India, explains:
“Inventory growth suggests a buyer’s market, but Tier-1 city prices are still out of reach for many.”
Hidden Risks Buyers Should Watch For
- Construction Delays: Many projects face delays due to rising material costs.
- Resale Market Slowdown: Demand favors ready-to-move-in homes over investor resales.
- Unfulfilled Infrastructure Promises: Future price growth depends on delayed metro/expressway projects.
Who Can Benefit from This Market?
- End-users with stable incomes: Can secure better deals without bidding wars.
- Long-term investors: May find undervalued properties in emerging areas.
Shivani Basu, Real Estate Analyst, advises:
“Focus on completed projects and upcoming corridors where prices haven’t peaked.”
Final Verdict: Proceed with Caution
While this is a rare opportunity for well-prepared buyers, risks like high costs and delays persist. Thorough due diligence is key—alternatively, waiting for further corrections could pay off.
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