To buy or not to buy ?

To buy or not to buy is the question ?

Most of the buyers have a question whether it is a correct time to buy a residential property now . Would like to answer this question in this post and the view point are based on decades of experience in the market. It is true that buying behaviour differs from time to time as it is based on the overall buyer and market sentiments . The four segments of real-estate have their own way of performing . When I mean four segments I specifically mean residential , office space , industrial and retail space. The worst hit segments during the pandemic and post pandemic period are the industrial , retail and office space which initially displayed lower performance as were the worst hit segments during the pandemic period. The residential rental segment was affected to a great extent but as people returned back from their home towns it picked up .

Retail of the other hand got affected to a great extent and the scares are visible even today where you can easily witness numerous retail outlets having a deserted look , malls have lost their shine and probably this time it would take longer to fill in and regain lost ground. The ones still standing tall are the ones that have shop owners selling from their own properties or those who have been able to sail through the rough waters . On the other hand the small area retails have probably been able to hold on to the times as their monthly expenditures were bearable. But when we explore the current times , no doubt the retail sector is filling up the gaps and probably during the second or third quarter of 2023 we should be able to witness growth in retail space being occupied in numbers. Not that in the current period fresh leases are not happening , they are and probably more in numbers in New Gururgam as they give an opportunity to cater to these untapped sectors specially banks , retail outlets , hypermarket , ATM , and so forth.

On the other hand the office space segment has fairly done but not what is expected as there is still vacant space that needs to be leased out and especially the ones vacated during the lockdown during the pandemic period.

The industrial segment is probably the worst hit and witnessed with a sluggish movement with less rentals and sales happening . Probably this segment needs price correction both in sale and lease. It is futile for owners of buildings located in areas like Udyog vihar to ask rentals as high as commercial building located at Sohna road . But definitely one can witness the correction there with many ready to strike a financial viable deal.

Probably the most active real-estate segment is the residential one. Prices have certain hit a high and movement has been witnessed as deals have happened during the last year . The pace at which owners started hiking prices for plots , builder floors , kothi’s and even apartments in select localities in Gurugram created an unrealistic price for the buyer . It wouldn’t be wrong to say that owners did realise this and a silent price correction has come into existence. Yes , negotiations across the table is open for a good deal but the catch is to know the inside story before striking a deal. So we come to the question if it is the right time to buy or not to buy ?

If planning to have your own office space then it is a good time to explore opportunities as you can get good desirous deals looking at the market conditions . As for retail be cautious by choosing locations with good footfall and lesser CAM Charges . As for residential you never know you might be able to strike a decent deal .

I would say it totally depends on what you are seeking to buy. If it is a plot then whether you are sitting for the meeting with the actual owner or a person who is trading it ? If so then what are his conditions ? A trader would have time lines to complete and so what is his time line. On the other hand if it is the actual owner then what is his reason of selling ? Is he relocating , selling for need of money , Selling as this is his second or third home , does ne need finances to service a loan , is he a builder and requires finances for his pending projects ? One needs to carefully evaluate and then negotiate on the deal . The best way to go about it is to go through your consultant who knows the exact details of the seller . The other major reason of appointing a consultant is he works as a bridge between you both and works towards getting both seller and buyer meet with an agreeable proposal. SO if you have been waiting to get a good price , then do try you never know this could be the best time to strike a deal . These are purely my individual reading of the current real-estate market ( Specially Gurugram ) and you may agree or differ on my viewpoints.  Sanjay I. Lal