Annual Property Price Fluctuations Across Cities
A survey conducted by P
roptiger, a real estate advisory service provider, shows that the first half of 2014 witnessed not only a real estate drop in prices, but also affected many former hotspots, which is not very promising to developers. This survey was carried out in key metros including Chennai, Mumbai, Delhi, Pune, Kolkata, and Ahmedabad.
Mumbai and Noida have the most unsold inventory for the past year, while Mumbai and Gurgaon have the most expensive unsold property costing close to Rs 1 crore. As compared to 2013, the first quarter of 2014 tells us that the National Capital Region property market has deteriorated, along with the rate of launches and sales volume by 50% and 22% respectively.
The survey suggests that factors such as low income levels, and 40% delay in project completion dates have deflated the confidence of property buyers to invest in real estate, even though property prices have appreciated. However, 49% of buyers speculatively invest in property here, as they are under the impression that there will be some positive change in the near future that will ultimately result in high returns from investment.
Bangalore has a booming real estate sector, where sales have gone up by 60%, catering to 80% of end users including local buyers, working professionals, and NRI clients. This city alone is responsible for 17% of new launches, as well as an 8% increase in property supply in the same quarter. Builders offer a combination of upper and mid-segment housing, as the Bangalore real estate environment seems to be immune to adverse economic conditions, thereby not leading to a decline in prices unlike most other key metros in the same period.
Source: The Times of India
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