The real estate market in Indore continues to stagnate due to lack of liquidity, but property prices may have bottomed out, say experts.
Even as demand from end-users has picked up to some extent, several projects on the outskirts have been moving at a snail’s pace as inventories have piled up.
“There is some demand from the end-users, but the market has failed to revive on the outskirts, particularly along the Bypass Road. The reason behind this subdued sentiment is lack of liquidity (cash flow),” CREDAI Indore president Naveen Mehta said.
Experts are of the view that the market has bottomed out and it’s a good time to invest for long term.
“There is nothing spectacular happening in the property market. The end-users are buying as per their budget. However, looking at the future development, this is probably the best time to invest in property,” Indore Property Brokers Association president Rajendra Bhaiyya said.
CREDAI Indore executive member Atul Jhawar said while the investors are not active, there is good demand from end-users.
With property prices in the main localities of the city ruling sky high and land in short supply, there is greater development on the outskirts of the city along the Ring Road, Bypass Road and the Super Corridor.
As compared to a rate of `10,000-`12,000 per square feet in the city, the land prices on the outskirts are around `800 to `2,500 per square feet.
“Ultimately, success of any project depends on the pace of development and some projects have failed precisely due to lack of development. The delay in completion of projects has made the buyer more cautious,” Rajendra Bhaiyya said.
Experts hope that the proposed real estate regulatory bill will help change the current sentiment among home buyers.
The Union cabinet on Wednesday approved 20 major amendments to the Real Estate (Regulation and Development) Bill, 2015, which aims at greater investor protection and transparency in the real estate sector.