Delhi-NCR housing sector to witness a fall in prices
Delhi-NCR- The prices of properties, particularly in NCR, are about to witness a downfall in the near future, presume National Housing Bank (NHB). Along with this, 20 percent growth is expected in the residential sector during the current financial year against 17 percent in the last fiscal.
Many cities including NCR region have observed fall in prices in the housing sector and the same trend is expected to continue for some time. During the previous fiscal, there was a correction of around five percent.
After releasing Report on Trend and Progress of Housing in India for 2012, NHB Chairman and Managing Director said that oversupply of residential units has led to the reduction in prices but it is difficult to predict by how much prices would correct this year.
There has been up to four percent fall in property rates in and around 11 cities across India, however the housing costs increased marginally or remained stable in nine cities.
As per NHB’s estimate, by the end of March 2012, the housing loan market was about Rs 6.61 lakh crore of which, about Rs 2.60 lakh crore was contributed by housing finance companies.
According to the report, Indian manufacturing and services sector witnessed slow growth. However, the housing sector was not affected by the slowdown because of regulators monitoring by specifying capital requirements, applying adequate risk management systems and maintaining the asset quality, said the report.
There would be a shortfall of housing by 18.78 million units this year, states the latest estimate by the government.
The residential sector largely witnessed supply constraints during the year while the demand for retail housing loans has been significant. The growing middle class and urbanization were the key drivers to this scenario along with many other factors such as scarcity of land, finance at reasonable rate, infrastructure, legal and regulatory framework and the limitations of the private and other stakeholders to provide low income housing. The steady growth of the housing sector is because of the enhanced risk management system, a constant vigil on the exposure limits, capital requirements and asset qualities.
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