Since buildings have a long life, the stock of owner-occupied housing units in the country constitutes a major chunk of the existing households. The turnover from this segment is large in relative to the flow of additional units being produced each year, which numbers several millions. Indeed in the prominent urban areas practically every house coming on to the market is from the existing stock of houses.
In such a situation demand determines the price of houses. For example, let us assume that there is an increase in the demand for living accommodation. In such a situation, the existing dwellings will be used more intensively, e.g., by a decrease or disappearance of the number of vacant dwellings, an increase in sub-tenancies, a doubling up of families, and an increase in the number of persons per room. Eventually, this will cause the prices of owner-occupied houses and rents of existing accommodation to rise.
But since the flow of new houses on to the market is insufficient to affect significantly the supply, this higher price being quoted for the existing houses will represent the price of all houses in the market. Any newly built house, which comes on to the market, will be sold at the higher price. In other words, the price of new houses is determined by the price at which existing houses sell.
The Real Estate Agents India has seen are masters in managing the best deal for both the buyers and sellers. They have an in depth understanding of the trends in the local real estate market like no one else. According to the budget of the customer, they will rightly assist a buyer to own the choice property that gives him utmost satisfaction.