Property prices in Mumbai, Gurgaon may drop
Due to the price correction, home prices in NCR regions and Mumbai will reduce after a long time. Increased property prices, lower demand and liquidity issues have resulted in pushing the prices lower in various markets which has recently resulted in price appreciation.
As per reports, there was an increase in property prices in Gurgaon due to the lack of new constructions this year. The average ticket size of units in Gurgaon were more than cities like Pune and Bangalore which are the largest commercial, residential and industrial markets.
An 18-month approval hiatus stopped the launch of new projects in Mumbai which in turn resulted in supply. However, currently the large number of supplies scheduled followed by a slow financial sector, the prices are expected to be corrected.
The report further stated that there were very few home loans being given in the past few months resulting in a drop in property demand. Also, most realty developers are not getting sufficient money from the banks which has also resulted in the finances by Rs.4800 crore for the financial year of 2013.
It was said that the latest government directive has resulted in an increased lending amount but only for selective developers. Lesser liquidity and lower sales will apparently result in price correction. A decline of 30 percent was witnessed in 2012 in terms of new projects.
Also, there was a huge gap between the new units launched and the units sold in the year 2012 with a reduction of 32,000 when compared to 94,000 in the previous year owing to the reduction of new launches. It was said that Pune, Chennai and Bangalore accounted to have more end-user demand when compared to Mumbai and Gurgaon which have driven sales by people who are considering real estate as a better investment option. Most developers have a bullish brokerage along with reduced rating and lack of clarity on the promoters.
Related Real Estate News:
Property prices in Mumbai is increased
Property price in Mumbai will rise
Gurgaon, Home loans, Mumbai, Projects in Mumbai, Properties in Mumbai, property prices in Gurgaon, Real estate in Gurgaon, Real estate in Mumbai, residential and industrial markets
