Re-sellers in a hurry put real estate in a new low
Businessman Partha Mehta is in a hurry to sale his two-bedroom flat in Mumbai’s Borivali area for Rs 58 lakh, three times the amount he paid for it four years ago.india Updated: Nov 25, 2008 20:49 IST
Businessman Partha Mehta is in a hurry to sale his two-bedroom flat in Mumbai’s Borivali area for Rs 58 lakh, three times the amount he paid for it four years ago. “I may not get this amount after a month. Prices are crashing and who knows when the market will revive?” Mehta told Hindustan Times.
Dealers say there are thousands like him in Mumbai — and also Delhi — looking for buyers to exit in the belief that prices
The intent is to make quick money and invest in secure financial instruments. Part of the money could go towards buying a cheaper property later. Some house owners are not even averse to staying on rent during an expected transition.
“Today there are more sellers than buyers. I have not had a buyer for three months,” said broker Parimal More.
In suburban Powai and Mira Road, the signs are clear. A lady who has put her one-bedroom for sale for Rs 17 lakh, said the best offer is for Rs 14 lakh.
A Powai developer who sought Rs 6,500 per square foot two months ago is now ready to sell at Rs. 5,000.
“This is happening all over. Sellers need to reconcile the current reality and accept a cut. Buyers need to have confidence that prices would not crash further. Until that happens, deals will not take place,” said Anshuman Magazine, managing director, South Asia, for property consultancy firm CB Richard Ellis.