Indian property buyers wait to make their moves

August 28, 2008 by OPPE News

Indian property sellers suffering from the country’s real estate slump need only wait for buyers to make their move, a leading firm has said.

Mastghar.com said although the present time was not ‘ideal’ for developers and sellers, buyers are only holding off due to an expected fall in prices.

Industry experts are predicting the current slide in Indian property will last four to six months, with prices dropping 10 to 15 per cent in some urban areas.

A Mastghar statement read: “The decelerated pace has affected the sector. The leading banks have increased the interest rates of home loans and the rate of inflation is also rising.

“Prospective buyers are delaying decisions because of a widespread conjecture of probable price reduction in times to come. How long one should wait and watch is not known, however.”

India’s property market began to boom around six years ago after developers rushed to build new property for a middle class experiencing surging incomes.

Supply outstripped demand in some areas, however, and builders were also hit by the credit crunch.

India’s long-term real estate future still looks bright thanks to a still-improving economy.

Confidence has also been helped by a planned hedge fund investment drive planned by the Donald Trump Organisation, expected to give a $1 billion injection to the country’s property market.