How to buy and sell apartments in India, one of the world’s hottest markets for buying and selling properties, has been one of this country’s biggest trends of the year.
According to data compiled by a property website, the average price of a home sold on the website jumped more than 15 percent year-on-year in September 2017, and by a further 8 percent in the first quarter of this year.
“The market is growing exponentially and this is the reason why it is very difficult to sell and buy properties,” said Gautam Rajkumar, managing director, ResidencesIndia.
“We are seeing more and more properties go for a premium as compared to the normal market, and this makes it hard to sell.”
The biggest growth in the average sale price of properties across the country in the last three years has been in Vizagar, which saw an average increase of 19 percent in price in 2017.
In Vizag alone, a number of property developers have been selling properties at an astronomical premium.
In 2016, the city recorded a staggering 4,038,000 transactions for property.
This year, the figure was 6,914,000.
In the last two years, the number of transactions in the city has increased by 30 percent.
“This is the main reason why houses are selling at such a premium.
This is not a good trend for the country,” said Rajkumars associate.
While the average market price of apartments in VizAG is significantly higher than in other cities, the increase is also not uniform across the state.
“There are many buyers who are buying properties at the highest prices and reselling them at a much lower price,” said Residences India.
According the data, the median sale price in Vizaga was Rs 12.65 crore, which is less than the average of Rs 20.60 crore.
For the first six months of 2017, the market value of properties sold in Vizags market stood at Rs 14.5 crore.
Residences India is the only company that provides data on the market values of all properties sold on its website.
It is also one of several property developers that has been targeting the capital cities of the country, where the market is booming.
In recent months, more and the developers are also moving to other cities like Mumbai, Chennai, Kolkata and Ahmedabad.
According TOI, the developers who have been active in the market have also been trying to capitalize on the trend.
The property developers are targeting buyers in areas like Hyderabad, Pune and Surat.
“This is one of their key strategies, and they are aiming to capture an increasing share of the market,” said Dr Rajkuma.
“There are several companies in the country that are targeting the new capital cities and are targeting to sell properties in the capital as well.
They are also trying to gain market share from the new urbanisation in those cities,” he added.