Putting up a brave face

[Walke29]

As of now, the investors want the property market to reflect a clear picture. And after they sell off certain non moving stock, buying spree may start again afresh. It is also linked with the liquidity crunch in the economy and falling stock exchanges in the country. Bulk of investors dos not want share market money to go easily from the real estate market. For all those people who have invested in real estate from profits accumulated from the share market want a way out to pay off the liabilities caused due to the present crisis in the share market. Major players in real estate sector want the rates to stop rising for some time so that they can capitalize on stress sales. These are times when big game plans are in the hands of few groups of individuals and finance companies that have entered the sector quite recently.

Builders in Kerala, just as in other parts of the country have already started reducing the prices of their Property in Kerala. Ready stock is still not available as the builders have already sold some percentage of their stock during under construction to investors. The investors want handsome returns on the finished stock as they do not trade in the open market but through the builder only. That stock is again sold by the builders to the actual buyers which results in adding on another profit margin. So, effectively speaking, when the actual user buys the property, he has to pay investor´s hidden margins which have already switched hands several times during the time of construction. In effect this period is just a recess for the players. The present rates are likely to go up by the second quarter of the next year. Builders have holding capacity and rest assured will bounce back into the business soon!