Property buyers waiting for sellers to crack

“Change is the only thing constant”- this is indeed true when we take a look at the emerging trends and numerous changes likely to be witnessed in the post-pandemic era. The financial repercussions of COVID 19 are unimaginable, and along with the world at large still coming to terms with these changes, the real estate industry are trying hard to rise just like the proverbial “Phoenix Bird Rising from the Ashes.” 

The ongoing pandemic has slowed the progress of numerous ongoing real estate projects, as many projects have been halted due to lack of manpower, scarcity of production material, or as a preventive measure against the spread of the virus. This in turn has caused a deficit of funds and reduction in revenue as a result of extended timelines, deferred payments, and canceled deals. This slowdown is reflected not only in metros like Mumbai, Bengaluru, Delhi, Gurugram but also in other Tier-I and Tier-II cities.  This unexpected delay, and the prevailing economic crisis looming over almost all spheres of life, has made many builders freeze on new projects and stall their ongoing construction projects as well.

Observing this trend, many people are now reconsidering their decision to invest in such incomplete projects, as they are not sure of when they will actually see the light of the day.

At the same time, the melting economy, and cash crunch is deterring people from investing in ready to move in projects as well. Faced with the dual burden of blocked funds and maintenance of these projects; and with no hope of takers in the near future, real estate developers are at crossroads on how to bridge the gap, and get the ball rolling once more. 

In a bid to lure investors, builders are now offering numerous amenities like modular kitchens, high-end bath fittings and many more to woo their prospective buyers. 

Besides this, they also offer customized payment plans that make the deal more lucrative from the buyer’s perspective. Keeping social distancing norms in mind, virtual tours of the property has become a new and popular norm. With a combination of one or more of these means, buyers are trying their best to win prospective clients. 

Despite these measures, if everything else fails, the only solution in the horizon is to renegotiate. As many investors are facing a huge cash deficit, defaulting on payments, and backing out of deals seems to be on an all-time rise. 

And in distress, sellers are left with no option but to offer huge discounts. 

Statistical data and research reveals that many real estate sellers are willing to offer discounts ranging between 5 percent and 20 percent as per the seller’s convenience.  While these discounts may help to salvage some deals, it may not always work, as buyers may still find it beyond their reach. 

While renegotiation is indeed beneficial, it may often reach a deadlock, where property buyers with high liquidity are willing to wait it out while the sellers crack. While big barons may have the means to wait it out, there may be others who would see sales over margin as their only ray of hope. 

Desperately holding onto this lifeline, the real estate industry is trying hard to push its engines in the right direction. 

With each passing day, the crash crunch and the need for turnover of revenue become greater, and this increases the desperation of sellers. It is this desperation that acts as the silver lining in the cloud for smart investors. 

As the popular saying goes, “When the going is tough, the tough get going.” And this is what is reflected in the emerging trends of the real estate arena, where prospective buyers are willing to take risks and invest in projects where there is greater room for negotiation. 

But not all people are able to identify such projects and hence smart investors seek help from competent realtors like Arif Lalani, who identify the nerve of the market, and guide investors through the entire buying procedure, and make them meet prospective sellers, who are willing to crack. The competency of people in the property business will surely come handy in finding ideal urban investments and property solutions. This once in a lifetime opportunity does indeed change many fortunes, but such deals should be signed with the utmost caution, as there is always a chance of being duped. Hence, it is advisable to always seek the services of a good real estate agent, to ensure better transparency throughout the process. 

So if you are a prospective investor, looking for any life-changing real estate investment, do not fall prey to dubious agents and brokers. 

Rather, you can end your search here, and get in touch with us at URBAN INVESTMENTS & PROPERTY SOLUTIONS in India, to be rest assured that you get the best deal in the place of your choice thereby making your dreams come true.