The announcement of the lok sabha elections has influenced the pace of property sales in the state. Another reason for the lull as quoted by realtors is the rising prices and investors must be waiting to see the outcome of the elections to decide on their purchases.
The higher prices quoted for property has a lot to do with the decrease in sales. Affordability is another major factor influencing the decision to buy property. Prices have shot up due to factors like labor costs, taxes etc.
Experts at the Ikia consulting services, tax advisory, are of the opinion that the government should consider giving a tax concession to first time home buyers. In cities where infrastructures like the roads are good, the development of property is spread out evenly. Another concern that came up due to the announcement of elections is that the labor force has fallen short as they have gone back home to vote.
During elections builders and developers do not focus on launching new projects but focus on selling existing inventory. This is to raise money for elections and at times they do sell at prices below market rates. Hence end user may get what they are looking for from resale or secondary markets at bargain prices. Builders may also offer substantial discounts/freebies during this time to benefit the buyers.
Source : The Hindu