Fluctuations are a law of nature, affecting everything from everyday lives to larger industries like real estate. This principle has been particularly evident in the real estate sector during 2024. After the COVID-19 pandemic, as conditions began to normalize in 2022, both investors and end-users started actively buying properties. This enthusiasm extended into 2023 as well, with real estate becoming a favored sector for investment and personal use. However, the high demand led to a steep rise in property prices, with metropolitan cities witnessing an average price hike of 30% this year.
This unexpected surge, particularly in new projects, has now resulted in a decline in demand. A recent report corroborates this trend, showing a 6% drop in property demand in NCR and up to 20% in Kolkata. Similar trends are visible in other cities and metro areas. With such conditions, the pressing question is whether this is the right time to invest in real estate or should investors and end-users wait a bit longer? Let’s analyze the situation.
Should You Wait or Invest?
The golden rule of any investment is to buy low and sell high—whether in stocks or real estate. Currently, property prices are high, which is directly affecting demand. Economic principles state that when demand decreases, prices eventually follow suit. With property demand already down by around 6%, waiting a little longer might yield better opportunities.
Also Read: Lessons from LA Fires: Get the Right Fire Insurance for Your House
Also Read Why are Tech stocks down today? 3 reasons keeping investors away… Budget 2024 made investing in US stocks more tax efficient. What to expect in 2025 Steady interest rates and healthy income growth boost housing affordability in 2024 No cause for alarm
“Traditionally, property demand peaks between Navratri and January, prompting developers to hike prices. Conversely, demand often dips during February and March due to income tax commitments and limited liquidity, making it a favorable time for buyers. Given this pattern, the coming months could see further dips in demand, creating opportunities for more reasonable prices. If you’re considering investing in the NCR or other major cities, it might be wise to hold off for now,” suggests Pradeep Mishra, CMD, ORAM Developments.
Resale Properties: A Smart Alternative
If postponing your investment isn’t an option,
» Read More
