The Elusive Dream Home: Rising Realty Costs Trouble Buyers
For over eight months, Nisha Parekh, a 30-year-old professional, has been on a quest for an affordable residential space in Ahmadabad, only to find herself outpriced despite increasing her budget by a substantial Rs. 10 lakh (from Rs 25 lakh to Rs 35 lakh).
A Shared Struggle
Nisha's story is not an isolated one. Many young buyers have been thwarted in their pursuit of a dream home since realty prices skyrocketed by 30% in August 2009. Nisha, formerly a researcher with ISRO, lamented that even with a significantly enhanced budget, finding the right home at the right price has remained an elusive goal.
Expert Insights
Mr. Dutta, another witness to the price surge, noted that 2008 saw prices in Mumbai reach unprecedented heights. In response to dwindling transaction volumes, developers have resorted to offering incentives to lure buyers. According to Mr. Dutta, a 15% price correction could potentially revitalize the market. If prices continue to soar, developers may be compelled to reintroduce schemes and discounts that were previously discontinued.
Market Misalignment
Critically, Mr. Dutta observed that realtors are predominantly focusing on high-profile projects valued above Rs. 40 lakh, which, from the buyer's perspective, are unaffordable. This disconnect persists despite economic stabilization and improved job security.