Sunday, June 22, 2008

Why the secondary market for premium residential property in NCR has suddenly become very active?

Most developers launched a spate of such properties largely aimed at investors who put in the initial deposit and also the next two installments but waited to exit till the values went up substantially. With the property market hitting a trough in 2006-2007, most of the investors found it difficult to get the profits that they had envisaged and therefore held on to the properties till possession when values were expected to rise.

The NCR market had a peculiarity of its own, explains an investment adviser. Developers launched project after project but did not start projects. Payments were time-based and not construction linked. As a result developers had already collected between 40-60% of the payments even before breaking ground. When the slowdown happened in 2006-2007, strategies changed and developers started completing projects in hand rather than creating new projects. Hence the market is flooded with ready-to-use premium residential property.
Property pangs: Indian rental market zooms- Property-The Sunday ET-Features-The Economic Times

No comments:

Post a Comment