Why now is is the most opportune time to invest in Indian property
Friday 23rd of September 2011
The weakening Indian rupee and a fall in demand from local buyers mean that ‘expatriate Indians could be staring at the most opportune time to pick up property back home’. That’s the opinion of leading Middle East newspaper Gulf News who believes that it could be a great time to buy Property In India.
Falling demand for property could see correction of prices of property
in India
Other property experts agree with Gulf News’ assessment. Anuj Puri, chairman and country head at Jones Lang LaSalle India, said: “The residential market in many cities is heading for a semi-stagnation mode, meaning that many overheated central areas will see a considerable drop in demand.
"It is a fact that prices have risen beyond affordability in many areas of Mumbai and Delhi. These areas are bound to correct since there is very little demand at current prices."
The newspaper reports that except for a brief period in 2008, prices of Property In India did not fall sharply in the way that it did in other major economies. Gulf News says that ‘the fact that the Indian economy did not tank plus increased demand from domestic investors ensured that the real estate sector held its own.’
However, with economic growth in India starting to look shaky and several recent interest rate rises aimed at controlling inflation, demand for Property In India is starting to slow down.
Mortgage lending in India has reduced sharply in the last six months and looks set to continue throughout 2011.
Mr Puri continued: “Overall demand has dropped by around 30 to 35 per cent depending on the location and property typologies; there is a definite lack of enthusiasm for premium projects wherein developers have not yielded on their asking rates.
“Demand will pick up once prices come down sufficiently."
