09 , May , 2020
Realty Dekho Team interacts with Sanchit Bhutani, Chief Financial Officer, Bhutani Group to ascertain whether it is the right time to Invest in a property or not?
Amidst this lockdown, with all
the home buying plans being massacred, the home buyers are left with no option
but to sit at home and deferring their decision till the lock down is lifted.
The reason is obvious, and that is due to speculations in the market or risk
pertaining to economic conditions. Realty
Dekho Team interacts with Sanchit
Bhutani, Chief Financial Officer, Bhutani Group to ascertain whether it is
the right time to Invest in a property or not?
Realty Dekho (RD): Should you invest in a property now?
Sanchit Bhutani (SB): According to reports “This is the best time to invest as the rates are on a downward trajectory. There will always be demand for commercial space, so for better yield, now is the time to buy”. The only consideration for a prospective buyer should be to ensure that the developer has delivered projects in the past.
RD: Who can be the prospective buyers in the current market?
SB: There can be three categories of prospective buyers:
RD: How much is the scope for Negotiation during this Lockdown?
SB: There is scope for a great deal of negotiation during this lockdown. However, it also depends on many other factors - the property, trustworthiness of the builder and their expectations.
To negotiate for a good deal, the buyer needs to do a thorough check. This includes a background check of the builder, the market conditions, the pros and cons of the property and assess their own budget.
They also need to compare the listed prices with the decreased prices over time. This will help understand the expectations of the builder and how much should you expect the price to fall.
There is a greater potential for negotiation if the project is an older project with unsold remnant units.
RD: What kind of scenario of the Realty Market are you predicting Post Lockdown?
SB: While the housing sector has seen stagnant for a while and hence there is possibility of up to 30% reduction in prices in housing sales. However, the volumes of office spaces increased at an impressive 27% year-on-year in 2019, according to a Knight Frank report. This was a great indicator for business growth in the economy. However, with the changing scenario, while the demand may take a fall immediately, this can’t be perceived as a threat for the demand in office spaces in the future. In spite of remote working, nothing can replace the human connection that matters in collaboration and thus impacts both productivity as well as the mental health of the employees. As the lockdown ends, there is a great possibility for higher demand for office spaces.
