Demonetisation impact on new property market is likely to be less than the resale market. The land owners and resale market is the hardest hit in the demonetization aftermath. Overall the transactions in the real estate market have reached to alarming low levels.
However the negative sentiment is a key to new home buyers who are cash ready and want to purchase a new home for living purposes. The uncertainty in the market and the general lower demand has to negative sentiment. It is also perceived by many that the cash crunch due to demonetization will lead to sudden drop in sales as the builders are affected by this move.
Still builders are offering attractive offers to maintain sales but they also cannot provide huge discounts due to the previous buyers sentiment. However they are willing to negotiate if you have cash ready to purchase or they are also getting freebies in the form of modular kitchen or free car parking. So in other terms it is the best time if you are looking to purchase your first home.
Your bargaining power has also increased in terms of price negotiations with the builder. The reason is that due to cash crunch in the market, the builders are in need of cash liquidity which will help pay off wages and fund construction activities. If you are a serious buyer, the builder would be willing to negotiate on the price even further than the approved price. Due to the cash crunch, resale market has opened up to the buyers which earlier was closed due to the high prices.
The ready to move flats has also become affordable due to the fact that 90% of first time home buyers were choosing home loans as a form of payment for the home. Since the interest rates has gone down the monthly EMI have also come down leading to affordable homes.
However the negative sentiment is a key to new home buyers who are cash ready and want to purchase a new home for living purposes. The uncertainty in the market and the general lower demand has to negative sentiment. It is also perceived by many that the cash crunch due to demonetization will lead to sudden drop in sales as the builders are affected by this move.
Still builders are offering attractive offers to maintain sales but they also cannot provide huge discounts due to the previous buyers sentiment. However they are willing to negotiate if you have cash ready to purchase or they are also getting freebies in the form of modular kitchen or free car parking. So in other terms it is the best time if you are looking to purchase your first home.
The ready to move flats has also become affordable due to the fact that 90% of first time home buyers were choosing home loans as a form of payment for the home. Since the interest rates has gone down the monthly EMI have also come down leading to affordable homes.
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