The Market slow down dropping the Real Estate Prices in India
US market slow down is slowly getting the real estate under fire. With most of the IT companies depending on US financial majors, IT employees are already feeling the heat. To add to the fuel – some companies already fired employees given the tight budgets they have.
I recommend caution in buying any property at this time. All those Real Estate Builders – who were hiking the prices without any reason, are now seems to be the underdogs. "AB aaya Unth pahaad ke niche".
In Hyderabad, I saw sky high prices for properties in the villages near High Tech City. I call all the near by areas as villages as there is no water supply, no road etc. Builders were asking Rs 3600/SFT to some of the new ventures like Boulder Hill was quoting INR 5500/sft. I am sure there are buyers who will purchase houses in these rates as well. But for a middle class person it is impossible to buy a house in these rates. Hopefully – NOW this should come down to a reasonable price which is justifiable.
Also the rentals in these areas are 13-14K for 2BHK which is not justifiable. I feel with this slow down we see a correction in prices.
My advice to the home buyers would be to stay calm and wait for some more time.