Price decline seen in key metros
Delhi no longer has realty prices that are constantly gaining momentum as per the statistics of the first quarter (January to March) of 2014. The National Housing Bank’s property price index has shown a marginal drop of residential property prices in this city by 1.5%. 13 out of the 26 major cities in India haven’t been spared and have also witnessed similar realty trends, according to NHB’s RESIDEX, which was devised to track property prices in major Indian cities.
Second tier cities had it worse off as Meerut witnessed the sharpest fall in the country by 13.6%. Ludhiana and Vijaywada also experienced a 10% fall, while real estate value of Jaipur, Coimbatore, Indore and Chandigarh went down by 5% as compared to the first quarter of 2013.
However, this index makes it clear that there isn’t a country-wide real estate lapse, and 13 cities still showed prominent price appreciation. Cities having a real estate growth of around 10% were Chennai, Nagpur and Surat, while Pune, Lucknow, Raipur, Ahmedabad and Hyderabad exhibited a price rise of 5 to 10%.
Compared to the 2007 real estate prices, only Hyderabad and Kochi have plummeted prices, while Bangalore and Jaipur remained fairly stagnant. Chennai’s price appreciation of 249% gave the best yielding results for this seven year period, and the six other cities that have witnessed more than 100% increase in property prices during this period include Kolkata, Faridabad, Ahmedabad, Bhopal, Mumbai and Pune.
As of right now, RESIDEX collects data from real estate agents, housing finance companies and banks in order to track property price trends for the residential housing sector, but eventually aims at providing statistical information for all 63 cities of India under the Jawaharlal Nehru National Urban Renewal Mission.
The RESIDEX data which has been available only for the past seven years tells us that residential property price appreciation has taken place for 24 of the 26 cities, and the outcome is that property investment is both safe and rewarding.
Source: The Times of India
drop of residential property prices, marginal drop of residential property in delhi, Metro, National Housing Bank, property prices drop in major
