Infrastructure – not oversupply – is keyMost cities have pockets with excessive supply, as well as pockets wherein supply is severely constrained. Despite concern about economic growth and high inflation, areas with excessive supply will continue to see demand, and therefore price appreciation. As long as an area is seeing infrastructure development, it remains a safe investment bet.
However, areas which are not immediately in line for infrastructure enhancement - such as the far suburbs of Mumbai and many areas in Delhi NCR - are definitely avoidable.
Budget-conscious home buyers gravitate towards areas which offer relatively lower real estate prices, but they will understandably not compromise on minimum livability and connectivity standards.
One last question remains unanswered - that of the elusive price correction versus the real, on-ground discounts and offers currently available.
Considering that sentiments are all set to improve on the back of increased corporate earnings and a revitalized capital market, the current sluggishness in property sales can continue for a maximum of two more quarters. This interim period is crucial for property buyers and investors, as the currently available deals and offers will continue for this period. The basis for this prediction is not conjecture, but the visible presence of economic factors that drive growth in the real estate sector. From this point onward, the clock is ticking and the countdown has begun.
(Om Ahuja is the CEO - Residential Services at Jones Lang LaSalle India)Latest Business News
