Focus On Properties With Solid Long-Term Potential

When sentiment is low, the best properties don’t stick around for long. End-users and savvy investors are already on the hunt, ready to scoop up deals while others hesitate. Be ready to move fast. Have your financing sorted or cash reserves available to make immediate, clean offers

Market sentiment can change on a dime, often leaving investors uncertain. When real estate sentiment is weak, it’s easy to get caught up in the negative headlines. But here’s the reality: sentiment is temporary; value is not. Strong markets have fundamentals that don’t evaporate just because of short-term emotional reactions. The properties in prime locations, with solid structures and room for growth, are still there. They’re simply waiting for those who recognise the opportunity.

The opportunity: Why weak sentiment can be a good thing

In times of weak sentiment, quality properties that are usually tightly held suddenly become available. Sellers under financial pressure or uncertainty are more willing to negotiate, giving serious investors a shot at assets that would normally be out of reach. And with fewer speculators cluttering the market, the playing field is wide open for those ready to act.

But here’s the catch—weak sentiment doesn’t last forever, especially in a fundamentally strong market. When things start to turn around, the opportunity to negotiate favorable terms vanishes, and you’re back to chasing deals in a seller’s market. Acting now, when others are hesitant, allows you to get ahead of the cycle and position yourself for substantial growth.

Don’t be swayed by emotion

Remember, sentiment is driven by emotion, but solid investments are grounded in fundamentals. Markets with strong infrastructure, diverse economic activity, steady population growth, and a high demand for property don’t suddenly lose their value because sentiment takes a dip. If anything, this is when you can acquire those properties at a discount. It’s about recognising that a strong market will rebound, and the assets you secure today will appreciate tomorrow.

How to invest wisely during weak sentiment: Focus on ready inventory, clear land

Let’s address the obvious: under-construction projects are risky during uncertain times. Delays, cost overruns, changing market conditions—you name it. Skip the headache and go for ready-to-occupy properties or clear land in strategic locations. These assets offer immediate cash flow and flexibility. Ready inventory can start generating rental income right away, and clear land gives you the option to develop once market conditions improve. It’s a safer play in a time when the market is unpredictable.

Move quickly and decisively

When sentiment is low, the best properties don’t stick around for long. End-users and savvy investors are already on the hunt, ready to scoop up deals while others hesitate. Be ready to move fast. Have your financing sorted or cash reserves available to make immediate, clean offers. Sellers dealing with uncertainty appreciate quick, straightforward transactions. By being prepared, you can secure prime assets before the market stabilises and others jump back in.

Look beyond the listings: Off-market deals

The properties that offer real value often change hands before they ever hit public listings. This is where your network matters. Build relationships with local agents, property managers, and property owners. They can provide access to off-market deals—the hidden gems you won’t find online. In fundamentally strong markets, these off-market opportunities are your best bet to acquire high-quality properties without getting into a bidding war.

Outbid where it counts

Yes, sometimes you have to pay a bit more to secure the right asset, especially when end-users are involved. The difference is that, as an investor, you’re thinking about long-term potential and growth, not just a place to call home. If a property has the right fundamentals—good location, structural integrity, and value-add potential—don’t be afraid to outbid strategically. It’s not just about winning the deal; it’s about securing an asset that will yield returns far beyond the initial investment.

Flexible financing can seal the deal

Conventional financing can be challenging during market uncertainty. That doesn’t mean you’re out of options. If you can offer flexible terms—whether it’s a quicker closing, a higher down payment, or some other arrangement—you become a more attractive buyer to sellers looking for certainty in an uncertain market. It’s about showing that you’re ready, willing, and able to make the transaction as seamless as possible.

Find emerging areas within strong markets

Established neighborhoods are great, but sometimes the best opportunities are in the emerging areas within strong markets. Look for places with new infrastructure projects, commercial developments, or zoning changes that signal future growth. By buying in these areas now, you’re getting ahead of the curve and setting yourself up to benefit as the market rebounds and these neighborhoods gain in popularity.

Think long-term

This isn’t the time for quick flips. When market sentiment is weak, focus on properties with solid long-term potential. Look for assets that might need a bit of work but have strong fundamentals—like a multi-family building that can be upgraded to command higher rents or a commercial property with underutilised space. These are the investments that will provide steady returns and appreciate as the market cycle shifts back in your favor.

It’s about fundamentals, not feelings

Investing when sentiment is weak is not for the faint-hearted. But if you focus on the fundamentals—location, quality, and growth potential—you’re positioning yourself for success. Markets recover, and when they do, the assets you secured during this period of hesitation will become the stars of your portfolio.

The bottom line

Don’t let weak sentiment scare you off. In a fundamentally strong market, this is your opportunity to grab better properties at better prices. Avoid the risky under-construction projects; go for ready inventory and clear land that gives you immediate income and future flexibility. Be quick, think long-term, and focus on value over hype. When the market rebounds—and it will—you’ll be the one holding the assets everyone else wishes they had.

Now is the time to act, while others are still sitting on the sidelines, waiting for sentiment to turn. The fundamentals are on your side; make them work for you.

(The author is Chairman, National Association of Realtors India)