Market health Sep-Oct 2009

September and October months saw the prices of apartments appreciate by around 10% across the country. With the market sentiment improving, transactions in the residential sector of real estate have gone up. This has made developers to increase prices by 5% to 10% in the last three months.

In parts of the city Hyderabad, hardest hit by 2007 - 2008 foreclosures, it is predicted that prices will continue slightly increase. At least stabilize if not increase. There will be not be more dramatic price drops such as 30% to 50% declines we saw between 2008 and 2009, but the market will not fully stabilize until mid 2010. Furthermore, consumer confidence will take some time to reestablish, as more people are still finding it hard to save their jobs. On the bright side, employed property seekers with good credit should find 2009 an excellent time to buy! November-December 2009 is a real good time to buy.

Enthused with the partial recovery, people have started investing and so buying now is good, i.e., before the market keeps up pace and the prices again take an upward curve.

Also, in an effort to drive up housing prices, banks are slowly plummeting interest rates. It is common opinion inside the market that competition will shrink towards monopoly and a few companies like Aliens Group and Ramky will control various aspects of the real estate industry, little guys will continue to get stomped on.