India’s real estate sector has seen an acceleration in the last three years, spurred by several factors including low oil prices and a revival of a real-estate sector which has lost out to a new breed of investors.
While real estate values are on a steady climb, it’s not without risk.
As the price of oil, India’s biggest export, continues to fall, the number of properties listed on the market is expected to rise.
And a lot of these are condos, condominiums, townhouses, and townhouses that are selling at below market value, said Prasanna Jain, managing director of real estate brokerage N.K.
K & Co. The biggest sellers in the market are luxury homes.
In a country where housing prices are rising faster than the economy, there is a need to make sure the price rises don’t get too much higher.
And that’s where the real estate industry can help.
The Real Estate Council of India, a trade body, estimates that the average house price in the country is around Rs 6 crore ($7.9 million).
In the capital, Delhi, it is around $4 million ($5.1 million).
But there are some exceptions.
“Most of the condos, townhomes, townhouse and townhouse prices in Delhi and other cities are around Rs 5 lakh ($7,500),” said Manish P. Shah, managing partner of Mumbai-based brokerage BDO.
The problem for buyers is that prices are expected to drop further in the next few years as the economy recovers.
That means the real-life costs of living are likely to increase.
“The demand for condos and townhousings in Delhi has fallen in the past few years, which is why people are looking at other options.
But the real market is very saturated with new listings.
So buyers may not be able to afford those prices in future,” said Rajiv R. Gupta, managing editor of Real Estate Week magazine.
A growing number of investors are taking a gamble on a realtor, particularly those who have been through the realty cycle.
“They want to sell a condo, so they get a mortgage to buy,” said N. V. D’Souza, head of realtor consulting firm DDS, who specializes in condos and other luxury properties.
The first condo or townhouse is listed on BDO’s site in February.
The listing price is around the $10 million mark, and there are more than 300 listings across the city.
“We have seen a realtors coming and going and people have been buying condos,” said Shah.
Some buyers have taken out loans to get into the realtivity market.
The lender can lend up to 10 per cent interest, but it can also take out a loan if the seller has an equity in the house.
The buyer may also be buying an apartment.
“Some buyers have been interested in a condo because they are looking for something to rent for a longer period of time,” said Gupta.
In the past, a condo had a monthly rent of about Rs 5,000 ($726).
Today, it averages around Rs 12,000 to Rs 15,000.
A lot of new condos are being built in Delhi as buyers are shifting towards the suburbs, where rents are higher.
But in the city, they have not been able to get enough equity to afford it.
As prices continue to rise, it makes sense to buy the house first.
“I bought a townhouse because I wanted to rent it out,” said D’Sho, who has been involved in the realtor sector for about 15 years.
“But I did not expect the market to be so strong in terms of price and volume.”
He has sold about 150 condos and more than 60 townhouses across Delhi, and he is now trying to sell one more.
The house, which has two bathrooms, was priced at Rs 8.7 million ($10.6 million) in September.
But he is still waiting for a buyer.
“If I am not able to find someone who is willing to pay Rs 10 lakh ($15,000), I am likely to sell it, he said.
He sold three condos in Delhi, including a condo at Rs 4.2 million ($749,000). “
The first time I was selling a condo or a town house, I got Rs 6 lakh ($6,500) in my bank account,” said V. Gopal, a realty broker who started in 2011.
He sold three condos in Delhi, including a condo at Rs 4.2 million ($749,000).
He had to make an extra loan because of the low interest rates at the time.
Now, he sells about 50-60 condos a year, and has an average of Rs 6.2 crore ($8.3 million) to his bank account.
“We are also doing more with agents, and we