According to industry experts, what is making the salaried professionals who had invested in
properties earlier to put them for sale is the fact that the country’s rising cost of living, low wage revisions, widening economic slowdown, and higher interest rates.
Owing to falling rental yields and rising interest rates, people are today finding it difficult to service their home loans. This is the section of people who had invested in properties 10-15 years earlier.
A survey reveals that the resale inventory has shooted up to almost 30 per cent over the past six months.
According to the head of a property portal, he believes that the economic slowdown has affected the real estate industry. What has affected the salaried class is that owing to high cost of living, they are finding it difficult manage things. Hence, those people who had invested in properties five-six years ago to make the most of the time, have now resorted to sell them.
He also stated that presently the resale market is hugely conquered by young professionals. Moreover, what has made the sector a profitable field is that there is high cash inflow.
According to another executive of a renowned realty company, in the present economic conditions, it has indeed become a challenging task to find tenants with higher rents as today people have become more aware owing to uncertain economic conditions. Hence, they are considering properties with lower or similar rents.
Moreover, the primary
buyers are ready to make a deal in the resale sector when compared to new homes owing to the risks involved in new projects.
The executive added that such resale inventory was primarily more in large metro cities. This has enticed the buyers too as they can get a chance to own a property immediately as compared to new properties. They feel the risks are less when they buy a resale property.
He also added that such deals would draw primary buyers. However, people looking forward to
investing in properties at the moment, might not consider this option.
