This pertains to Chennai real estate, but could apply to other major Indian cities as well. I am writing from my personal experiences having observed the market for the last 3 years and more specifically looking to buy a apartment for the last 1 year before finally biting the bullet recently.
if you are frustrated, hapless, helpless and even angry at watching the gravity defying raise in real estate prices, then you are not alone and in fact part of the majority of the prospective buyers. You think the properties are over-priced, but have that sinking feeling that the rates are likely to go up further and that if you miss now, you may not be able to catch up with the rates. Some builders seem to be hiking rates on weekly basis. Someone said, once the builder starts raising the rates, all the fence-sitters amongst the buyers rush in to buy.. good strategy!!
I also read in some newspaper article that 80% of the projects are targeted towards the top 20% of the buyers. I would say it must be top 10%. Also the market has become investor/speculator centric rather than buyer centric. I have heard statements like "One Investor from mumbai has booked 5 flats". Nowadays you are expected to rush to builders office with chequebook in hand as soon as soon as you hear about the project launch, no time to think, deliberate & decide. First book the apartment and then do whatever..
The ubiquitous "software professional" has long been blamed for the rise in the real-estate boom. Now it seems like even amongst them, only the top-level can afford the current rates. Or it must be a double income "software family". Even the "NRI software professionals" are feeling the heat. Some of my "NRI" friends say that they can buy property at same price or cheaper in their respective locations than here.
So what do we do... will the rates continue to go up - probably yes.. will the rates stabilise or go down - we can certainly hope.
