Saturday, December 5, 2015

The Real Estate Guru comments on Property Prices

People ask me the other day is it the right time to buy a property in Delhi-NCR? I say, If you have been hesitating to buy property in Delhi-NCR due to the high property prices, here is good news for you. Real estate prices in Delhi-NCR are already down. Therefore, this is just the right time for you to invest in a property in Delhi-NCR.                                                                                                           This is the first time in the last 3 years that the sale of residential properties in NCR (National Capital Region) and Delhi have witnessed a slowdown. There has been a drop of about 30-40% in real estate sales in the region. Experts are off after that this is one of the major contributors of declining property prices.

Fall in Property Prices
If you are looking to purchase property in Delhi or NCR, this is the best time to go for your new apartment. There has been a significant fall in secondary market prices of properties in the posh south were to North Delhi areas in the recent times. Moreover, investors in the real estate market have now become desperate sellers. The region is witnessing the availability of many distressed deals in the market. People are desperate to sell off their properties, as they want the money for alternative uses. They are even willing to sell their apartments at a much lower price.

Unsold Inventory is Helping the Buyers
Many brokers have claimed that almost every builder in Delhi-NCR faces the problem of unsold inventory. They are not able to hold on to the inventory anymore, as they are desperate for cash. Moreover, buyers in Delhi are taking a lot of time to make up their mind about purchasing a property. While the problem of unsold inventory is a major reason for property prices coming down, the government’s recent decision to hike the circle rates in Delhi has also had an impact on the property sales. Buyers are now enjoying an upper hand and are managing to negotiate payment terms in their favor for up to 6 months instead of 3 months, which has been the standard norm so far.

Buyers Have an Upper Hand
It is just the right time for you to buy property in Delhi/NCR. Real estate developers have been gradually slashing their prices and providing various attractive schemes to draw buyers towards their properties. Thus, purchasing a house in Delhi/NCR today is an excellent option. Sellers in Delhi are quite desperate to sell, and you as a buyer can bargain and get a house of your choice at the right price.

Prices have never been this low since the last two decades, and the attractive schemes launched by the investors have struck a chord with the buyers. Prices of properties have come down in Delhi/NCR due to several factors like high rate of inflation, slow economic growth and high rate of interest. Property developers are burdened with high inventory levels and debts that are compelling them to slash prices in many localities of Delhi.

Other Reasons to Opt for Immediate Property Purchase
●  Further decline in property prices will not happen in the immediate future due to the recent policies of a stable government in New Delhi, committed towards the development of infrastructure and land. So if you plan to buy a house, don’t delay any further.

● The average annual salary increment in India stands at a meager 10% and the inflation rate yet to be under control, but there are prospects of economic revival, which will lead to a sudden increase in property prices. So it is better for you to go for your dream house.

● Reserve Bank of India has recently taken certain steps due to which the rate of interests for EMIs would come down. This would again see an upward hike of property prices.

So before all these policies start impacting the property prices, you should seriously think of investing your money in the realty sector of Delhi/NCR.

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We are offering some projects for the people who want to buy property in Delhi NCR

Author: The Real Estate Guru Tarun Shienh is the Chairman of Premia Group. He enjoys writing informative blogs, articles, and reviews. He likes to think of her writing as an online resource; helping end-users answer questions while guiding others in the direction they seek.

Thursday, December 3, 2015

GST IS GOOD FOR ALL By Mr. Tarun Shienh

On the start of the winter session of Parliament, The Real Estate Guru Tarun Shienh today said it is time lawmakers across parties passed the Constitutional Amendment Bill on GST without further delay. This would send a strong signal to investors that India’s economy can overcome serious global and domestic challenges with political will.

He said GST can be an “Amrit” for the Indian economy against a very difficult global economic scenario, affected by demand slowdown, uncertain geopolitical situation after the Paris terror attacks, and an unprecedented crash in vital commodities.

“GST will harmonise indirect taxes by doing away with multiplicity of taxes. It will also reduce a cost of production, which will be then passed on consumers, thus lowering inflation. More striking would be the display of a political unity and the will to rise up to national cause. That will be a great positive for revival of investment, both domestic and international, something most needed at this point of difficult international times,” Mr Tarun Shienh said in his view on Special Interview with media.

Mr. Tarun Shienh added, Our GDP growth can rise by 1 to 1.5 percent by GST alone, going up to 9 percent from the present estimated 7.3 percent.

He urged the principal Opposition Congress Party to rise up to the national call and support the Goods and Services Bill in the Rajya Sabha. The Real Estate Guru requested the Government as well to reach out to all the political parties for a common cause.

“If the Congress Party or any other national or regional party has some specific concerns, the government should look into the same and address it as far as possible. There can always be a middle ground. Besides, the passage of the Bill would not mean casting it in stone; as the nation starts implementing the new taxation regime, some important lessons can be learnt and incorporated by subsequent changes in the law. But, if there is one thing that our nation needs from its political leadership, it is the GST,” Mr. Tarun Shienh said.

On the present state of the economy, The  Real Estate Guru said one of the main worrying aspects is lack of appetite for fresh investment which is further discouraged by lack of demand as is evident from the latest IIP (Index of Industrial Production) numbers showing the slowest growth industrial output in four months (3.6 pc) during September.

Mr. Shienh said that the critical challenge was to generate jobs for the one million Indians joining the workforce every month. The only way out was “Employment promotion through entrepreneurship”. He felt that the challenge was to become a nation of job creators rather than job seekers. For that, improving the ease of doing business was a critical first step. So, was better infrastructure, and more affordable access to finance and information, especially in small towns and villages.

Mr. Tarun Shienh cautioned poor rural demand thanks to two successive failures of Monsoon is clearly affecting the economic growth across different sectors—agriculture, industry, and services. Besides, there is a real threat of food inflation widening its scale well beyond pulses and onion. “Recent spurt in pulses (53 percent) and onion prices (85 percent) even on a wholesale price index, spells out an urgent need for a holistic approach on food production and management and how the entire rural economy should be well integrated with the rest of the economy”.

One suggestion was to have an empowered infrastructure dispute resolution mechanism, which would quickly solve the many problems that existing projects had got into, which was also deterring fresh investment.

On global economic head winds, Mr Tarun Shienh stresses upon the need to remain vigilant with regard unfolding geopolitical situation after the Paris terror attack and continuous problems in China. Japan has again gone into recession while the Federal Reserve has queered the pitch of raising or not raising the interest rates. “We need to give a lot of credit to RBI for ensuring stability in the foreign exchange rates even as most of the currencies of the emerging economies have seen a sharp erosion. But a constant vigil needs to be kept”.