Real estate developers may have finally blinked and started lowering their prices, but customers aren't buying yet neither their protestations of maximum discounts nor their product offerings.
The findings from two different surveys reveal as much. While DTZ International Property Advisor's Demand Analysis and Real Estate Trends (DART) Survey 2009 focusses on the trends in the commercial office space rental market, property portal Makaan.com's Me, My Home and Property Rates consumer survey looks at the residential segment.
DTZ's research, in fact, reveals why customers are still holding on to their horses. "If you compare today's rentals with the peak values of end-2007 prices are down by 20-25 per cent, with another 10-15 per cent correction expetced this year," points out Anshul Jain, CEO (India), DTZ.
Its DART survey, which covered 48 companies across Delhi, Mumbai and Bengaluru, reveals that 70 per cent of the respondents do not expect the market to bottom out before the next six months-- clearly indicating that they will be driving some hard bargains with the developers for lease rentals. In fact, renegotiation of rentals, by at least 10-15 per cent, tops the agenda of these companies.
Residential property: Roping in the fence sitters How much discount will attract how many buyers?
*21% home seekers expect discount greater than 30%
*23% home seekers want discount between 20-30%
*21% home seekers expect discount between 10-20%
*14% home seekers seek discount up to 10%
*21% home seekers willing to buy even at current price levels
Interestingly, a significant percentage of the occupiers 19 per cent are also using the current downturn in the realty segment to relocate to more upmarket areas that are now more affordable.
Source: Business Today Distress sales on the anvil
Subscribe to:
Post Comments (Atom)
there is no real price cut if u go in the mkt......they r just making us fool
ReplyDelete