Has RERA become an effective tool for property investors yet?
As a matter of fact, Maharashtra is the front-runner in the process of RERA implementation and had registered more than 13,000 projects till Oct 2017. Since its inception, it registered many complaints against developers by aggrieved buyers, and the RERA authority in the state has already started resolving them.
However, of the states have notified their RERA rules, many still don’t have the requisite infrastructure for a smooth process. States such as Haryana, Andhra Pradesh, Jharkhand, Chhattisgarh, Telangana, and Odisha still don’t have live RERA websites.
Is this the right time to buy a flat in Faridabad? We keep hearing that it is a buyer’s market. What exactly does this mean?
It means that the residential market now favours end-users. If you’re an investor who is hoping for some quick profits, look elsewhere because Indian residential property is definitely not what you should be looking for. However, if you are a patient, long-term investor who understands property cycles and market readings, your star currently shines as brightly as the end-user’s.
Four or five years from now, your investment — as long as you have picked the right location and project — will have grown sizably in value. If you’re looking to buy a home for self-occupation, now is probably the best time you could have hoped for. There is a massive supply of ready-to-move-in property options available at rates which would have been considered impossible 4-5 years ago.
I live in Chennai and I have been putting off my home purchase decision because I kept reading about the oversupply situation in residential real estate. Is the oversupply situation improving?
Unsold units in top 7 cities of India declined by 8% between Q3 2016 and Q3 2017. This decline was primarily due to restricted new launches amidst the green shoots of sales recovery. The cities in South India recorded a higher decline in unsold inventory as compared to the other cities, primarily due to strict control on new launches and the dominance of end-users in these cities.
Unsold inventory decreased by 22%, 18%, and 16% in Hyderabad, Chennai and Bengaluru respectively between Q3 2016 and Q3 2017. NCR and MMR, which account for around 55% of total unsold units across top 7 cities as of Q3 2017, witnessed a mere 6% decline in unsold units between Q3 2016 and Q3 2017. So, as the data indicates, you are in the right place at the right time for buying a home in Chennai.