In the current real estate market, buyers are urged to exercise caution and conduct thorough research before making investments. As market peaks heighten the risk of hasty decisions driven by greed, it's essential to be well-informed.
Key factors to consider include:
- Demand-Supply Dynamics: In tier-1 cities, the launch of 4.5 lakh units is met with the sale of 6 lakh units, indicating a higher demand than supply. Developers are keen to launch new projects, but they must assess market conditions carefully to avoid oversupply, which can negatively impact prices.
- Developer Track Record: Evaluating a developer’s history is crucial. Reviewing the number of completed projects and future commitments helps avoid pitfalls associated with developers who may lack the capacity to fulfill their promises, leading to buyer distress.
- Price Appreciation: Analyzing historical price trends in the area provides insights into future potential, ensuring that investments remain profitable. Understanding past appreciation helps gauge whether current prices are justified.
- Price Differential Between Under-Construction and Ready Properties: Comparing the costs of under-construction properties with ready properties is essential. Factors such as GST, interest on housing finance, and potential rental income should be considered. Currently, under-construction properties are selling at a 40-50% premium over ready properties, which is atypical and should be carefully evaluated.
For those seeking assistance, platforms like PropEquity offer detailed market analysis and insights, helping buyers make well-researched investments and avoid costly mistakes in the booming real estate market.