The rising interest rates and fall in demand has got real estate industry back in focus. The managing director of Hiranandani group, Niranjan Hiranandani told economic times that the prices of property might not be falling anymore and he also talked about the expectation from the real estate regulation bill. When he was asked about the correction scope for residential real estate market, he said that the correction required for the realty sector is now happening.
There has been decline in supply by 15-20 per cent, prices have dropped and production has also slowed down. All these are clear indication for the buyers that prices will not be falling sharply this season.
Hiranandani suggested to the buyers to take advantage of this slowdown and purchase property. Generally people plan to invest in property and buy a house only when the prices fall and interest rates on loans are low. In case both the factors are not fulfilled and the price as well as interest rates is high, the buyers would postpone their decision to purchase property. Buyers are aware that the interest rate will fluctuate over a period of time as the loan is taken for a period of 15 to 20 years.
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