Financial Express-Low Demand, High Prices: Should you postpone real estate investment for now?
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.
