Realty does reality check, prices fall 15-20% in Q
If high prices have been holding you from buying your dream house all these years, here’s something to cheer about. In the first quarter of this year, there has been a 15-20% price correction in markets across the country, especially in the residential segment.
In fact, in many markets, the level of transactions have gone down drastically, which has resulted in this dip. This is also because residential capital values in some micro markets in the metros have shown a negative growth in the last one quarter.
After tracking capital values in metros such as Mumbai, Chennai, Bangalore as well as Pune and the National Capital Region (NCR), the result was that either there has been a fall in prices of residential values or they have not increased in the last three months. In fact, places like Gurgaon have seen a dip of 15%, while the plot rates have come down by 20% in Noida. In Greater Noida, the plots which were selling at Rs 55,000-60,000 are now available for Rs 40,000 to Rs 45,000. In Indirapuram, rates of flats have come down to Rs 2,500 to Rs 2,700 per sq ft from Rs 3,000 to Rs 3,200 per sq ft.
Even prime areas in Delhi such as Friends Colony, Maharani Bagh, GK I & II, Prithviraj Road and Hauz Khas have witnessed a 5-10% fall in the prices.. However, in Mumbai, prices at Colaba, Cuffe Parade, Central Worli, Bandra and Juhu have remained stable in the last three months. The story is the same in Bangalore, Hyderabad and Chennai where the market has not witnessed an increase in the last one quarter. In Pune, localities like Kalyani Nagar have witnessed a dip of 15% in residential values in the last three months.
Says Shveta Jain associate director (residential) Cushman & Wakefield India: “The exceedingly high price points and spiralling interest rates have contributed to a reduction in interest from speculative investors due to decrease in holding power, resulting in a clear shift to a largely end-user-led demand. More price sensitive locations and developments in certain parts of the country have been witnessing a rationalisation of capital values in recent months, wherein the market is finally reaching price thresholds.” .
In fact, in many markets, the level of transactions have gone down drastically, which has resulted in this dip. This is also because residential capital values in some micro markets in the metros have shown a negative growth in the last one quarter.
After tracking capital values in metros such as Mumbai, Chennai, Bangalore as well as Pune and the National Capital Region (NCR), the result was that either there has been a fall in prices of residential values or they have not increased in the last three months. In fact, places like Gurgaon have seen a dip of 15%, while the plot rates have come down by 20% in Noida. In Greater Noida, the plots which were selling at Rs 55,000-60,000 are now available for Rs 40,000 to Rs 45,000. In Indirapuram, rates of flats have come down to Rs 2,500 to Rs 2,700 per sq ft from Rs 3,000 to Rs 3,200 per sq ft.
Even prime areas in Delhi such as Friends Colony, Maharani Bagh, GK I & II, Prithviraj Road and Hauz Khas have witnessed a 5-10% fall in the prices.. However, in Mumbai, prices at Colaba, Cuffe Parade, Central Worli, Bandra and Juhu have remained stable in the last three months. The story is the same in Bangalore, Hyderabad and Chennai where the market has not witnessed an increase in the last one quarter. In Pune, localities like Kalyani Nagar have witnessed a dip of 15% in residential values in the last three months.
Says Shveta Jain associate director (residential) Cushman & Wakefield India: “The exceedingly high price points and spiralling interest rates have contributed to a reduction in interest from speculative investors due to decrease in holding power, resulting in a clear shift to a largely end-user-led demand. More price sensitive locations and developments in certain parts of the country have been witnessing a rationalisation of capital values in recent months, wherein the market is finally reaching price thresholds.” .
Comments
Post a Comment