Market Trend For Real Estate in 2012?

The recent trend on apartment and home prices in the Bangalore city. As everyone aware, last year home prices reached a peak in Bangalore city. It is because of the excess demand and people gone crazy on buying the houses just for investment. Many people start buying more than one house to thinking of selling it later in higher price. But, the dream comes to an end and the entire world is in economy trouble. It affected real estate sector mostly by reducing the demand for new buyers and most of the builders started slashing the prices.  In this article I will explore the current trend in the Bangalore and is it the right time to purchase the new house?

Builders in Bangalore

There are many builders in Bangalore who have invested thousands of crores in building the apartments. Notably the prominent builders like Mantri Developers, Shoba Developers, ELF, etc. They are feeling the pinch of global recession and could not sell any of the apartments. According to the news, DLF has stalled all the ongoing projects because already finished projects are not yet occupied.

India’s largest real estate developer by market value, DLF Ltd, has slashed the pre-launch booking price of apartments at its debut residential project in southern Bangalore as the current slowdown dampens demand for realty.

Why home prices will come down further?

The simple answer is there is no demand for the houses. When people could not afford to buy the houses, there is no hope for increasing the demand in the real estate sector. From some my research and knowledge on the industry, I would say that the world economy is in the worst condition and will be in the extreme at the end of this year.

There may be few talks about the growth in the sector after 6 months, but that is purely eyewash and marketing talk.  So,  don’t hear those words and plan your purchases to survive this worst economy crisis.

You can expect the price reduction in the coming months and wait for some more time. This is not right time to buy a house, please wait for another few months and plan to invest in the real estate. There will be some more correction in the home prices .