Real estate developers in
Noida and Greater Noida have stepped up their pitch for festive sales with the
Allahabad High Court verdict clearing the air for the construction to resume.
However, high interest rates and apprehensions over the price hikes are worrying home buyers who are choosing to wait and watch for now.
"The news is certainly a great relief for the developers and the realty sector in the NCR region in general. But it may not be able to do any good for the festive sales. We have missed out this season completely," Ravinder Taneja, a property broker with Investor's Clinic told Mail Today. The Allahabad High Court verdict last week, which said that that the developers could go ahead with the construction in 60 villages after paying 64 per extra compensation to farmers, came as a relief to thousands of home buyers as well as the developers.
The decision has suddenly spurred the developers and property dealers to action. They are trying to contact all possible prospective home buyers on their lists.
However, buyers are slow to respond to the overtures of the developers and property dealers as they await more information on the new price tag for their dream homes.
"The developers will start fresh bookings in two to three days after deciding on the price hike. We feel buyers still have many queries and it will take at least a month and two for sales to pick up again to the same level as it was four months back," Taneja added.
Property brokers also said that apart from the apprehensions on the price hike, interest rate hikes are also holding back buyers from responding enthusiastically to the High Court ruling news.
"If you look at the profile of home buyers in this area, it is mostly salaried middle class. So, high interest is one of the key factors that are forcing them to wait and watch. I feel what is pinching the home buyers is the burden of the EMI (equated monthly installment)," a senior executive from Axiom Estates said.
"Moreover the news that home developers will hike home price is also deterring the prospective buyers as affordability is the main attraction for buyers in this area. I feel in a week to 10 days all confusion will be over and buyers will get a better picture," he added.
After the verdict most of the developers said they will pass on the additional financial burden to the new home buyers, which will push up the prices further.
"Home prices will certainly go up. There is now additional cost involved and we have no choice but to pass it on to the new home buyers. We expect the cost of homes to go up to 20- 25 per cent on fresh bookings," Anil Sharma, chairman and managing director (CMD), Amrapali Developers, said, post- verdict.
However, buyers are keeping their fingers crossed.
"I am keen on buying but I want to know the extent of price hike before jumping to make the booking. Many more projects will be launched. So, for now I will prefer to wait and weigh the multiple options. Also, I want to see if the Reserve Bank of India (RBI) will go ahead with the rate hike," Amit Chawla, an investment banker said.
Courtesy: Mail Today 
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