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Premium apartments have been the rage in the last few years.

At the height of the real estate boom in 2006, developers were selling
premium apartments of Rs 80 lakh to Rs 1 crore and above at values that were
unheard of in the Indian market.

>From benchmark values of Rs 1,900-2,200 per sq ft in Gurgaon in 2004, these
values had peaked to even Rs 6,700 per sq ft in 2006.

So what happens today when values have largely been holding and have come
down in select markets by even 15-25%. Explains an investment adviser: "This
is probably the best time to buy because values have not escalated for over
a year and in many cases have dropped significantly where the owner needs to
liquidate the asset."

Take the case of a buyer in Delhi's upmarket Greater Kailash I. An apartment
worth Rs 2.5 crore was negotiated at as low as Rs 1.9 crore if the buyer was
willing to make a cash down payment. After all, with developers having to
borrow at between 36% and even 48% interest due to the liquidity crunch, it
is cheaper to drop prices and get cash down payments rather than hold higher
values and borrow at high interest rates to meet working capital
requirement.

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