As property prices surpass the 2008 peak levels, realty experts suggest that a correction is possible in the upcoming quarters, especially in cities like Delhi and Mumbai, where prices have risen rapidly. This presents an opportunity for real estate investors to reap profits.
Parvinder Singh Sidhu, a marketing executive based in Navi Mumbai, concurs. Five years ago, he purchased a 750-sq-ft flat in Belapur, Navi Mumbai, for about INR 13 lakh. Currently, the flat's value is INR 35-40 lakh. Given the talk of a correction in the Mumbai property market, Sidhu is considering selling this house to make a profit. "I have a house to stay, so I can think of selling this one. If property rates come down in the future, I could buy a similar property at a lower price," he says.
Is it actually a good time to cash in on your real estate investment? Yashwant Dalal, president of the Estate Agents Association of India, says that property prices in many markets have started to show signs of correction. "In areas where rates have peaked, we expect the prices to go down by 25-40% in metro cities. If you had bought a house previously just as an investment, I would suggest that you sell as soon as you can and buy a similar property at a cheaper price later," says Dalal. According to him, property purchased even three years ago may have appreciated nearly 100-150 percent in some areas, so it may be a good time to book profits.