Sales are good in the country’s largest city, vizag.
But demand is picking up and the market is now so saturated that some buyers are finding it difficult to sell, analysts say.
“There’s a lot of supply in the market.
People are getting frustrated because they have no idea how much they are going to be able to get,” said S.V. Sankaran, an agent at Pune-based agent and brokerage Vaidy.
“And there is no reason for that because demand has been so high.”
Vaidy says that the current inventory of apartments in the city is about 50% below its pre-dawn peak.
It’s not clear if the peak is a sign of an imminent recovery or a sign that the market will cool off.
While sales have been good in Vizag, buyers are still looking to sell because they don’t feel that they can find any affordable homes there, Mr. Sattan said.
It’s possible that the price of a house will rise as well, he said.
“People are trying to sell but they have very limited funds.
They don’t have the means to buy, so they are selling for below market value,” he said, adding that this is likely to continue.
The government has stepped in to help the sellers and has offered to help in paying down debt on properties if buyers agree to sell.
Asking for money, especially for a house with no income, is often seen as an acceptable way to sell a property.
“It is possible that it will rebound.
But it may not, and that is not good for the country,” said P.V., a real estate agent in Chennai.
According to an analysis by National Geographic, the median price of apartments listed in Vizasag is about $2 million, but that price does not include the $1.5 million that buyers paid for the houses in the previous quarter.
If the peak price is closer to the median, it would be a good sign that prices are beginning to rise again, said Ramesh Kumar, the head of property research at SBI, a global real estate company.
Even so, the country has not been immune from a housing crisis, as prices in some cities have skyrocketed and prices in other cities are still rising.
At a meeting of the National Housing Federation, the government proposed a five-year plan to fix the affordability crisis, which includes building new homes and building rental housing.
But experts say that if the government’s plan is to really solve the problem, it should also address the problem of affordability.