Vivek Kaul writes ‘Many individuals bought homes as an investment when real estate prices were rising at a fast pace. Lately, prices have either remained stagnant or dipped (if we leave out the National Capital Region, where they did crash). The staying power of investors, who bought real estate as an investment, is lower than that of builders. They are a bit more amenable to price negotiations. Investors also tend to own apartments in societies that are already occupied to some extent. And they are ready to sell now”
he further comments that Home buyers are now down trading “Real estate reports concentrate on cities, where apartments cost ₹60 lakh or more. The average home loan given by HDFC is ₹27 lakh. For government banks, it is around ₹25 lakh. Taking this into account, along with a down payment and the black portion in most real estate deals, suggests that many homes are being bought in the range of ₹40-60 lakh, in cities and areas not covered by the reports.”