Property prices in major cities in India will fall by 15-20%

07.02.2011 13:50
Real Estate Market Analysis | Property prices in major cities in India will fall by 15-20% The cost of housing in Mumbai, Delhi, as well as in several other cities across the country will fall for the first time in eight months. The reason for this: many potential buyers have postponed the purchase of real estate in these cities because of its inaccessibility.

The most noticeable price correction to occur in two major cities of India - Delhi and Mumbai, as their domestic markets previously showed the highest increase in prices. As reported by Business-standard, experts predict a decrease in housing values in the range of 15 to 30% in different parts of Delhi and Mumbai. In the city of Gurgaon, the prices will be adjusted to 20-25% in Faridabad, Noida and Sonipate - 10-15%.

Over the past eight months, property in Delhi has risen by 40-50% with 100-150 thousand rupees ($ 2200-3200) per square meter. m up to 250-300 thousand rupees ($ 5500-6500) per square meter. m. The number of real estate sales to fall: in September 2009 had been sold 17 thousand objects, in September 2010 only 10 thousand, and in December, sales fell by 15%.

At this time, gaining momentum so-called "artificial" sale, where builders are transferred ownership to investors, brokers or insurers. The volume of sales increased from 12% of the total volume of sold real estate in September of 2009, up 43% in September 2010.

Even more negative situation on the market of Mumbai. On the decline in sales affected what the banks have changed the pricing policy: they are now providing loans up to a maximum 80% of the cost of housing, whereas before it was possible to borrow up to 90%. Besides prices since 2005 have tripled.

As experts predict prices in Mumbai decline gradually by 15-20% and will not rise over the next two years. However, developers are already accustomed to the high cost of real estate acquired by the investor-speculators, apparently, will try to keep the old prices. Make property more affordable and can be other methods, experts believe: sell the apartments smaller area.

www.zagorodna.com The cost of housing in Mumbai, Delhi, as well as in several other cities across the country will fall for the first time in eight months. The reason for this: many potential buyers have postponed the purchase of real estate in these cities because of its inaccessibility.

The most noticeable price correction to occur in two major cities of India - Delhi and Mumbai, as their domestic markets previously showed the highest increase in prices. As reported by Business-standard, experts predict a decrease in housing values in the range of 15 to 30% in different parts of Delhi and Mumbai. In the city of Gurgaon, the prices will be adjusted to 20-25% in Faridabad, Noida and Sonipate - 10-15%.

Over the past eight months, property in Delhi has risen by 40-50% with 100-150 thousand rupees ($ 2200-3200) per square meter. m up to 250-300 thousand rupees ($ 5500-6500) per square meter. m. The number of real estate sales to fall: in September 2009 had been sold 17 thousand objects, in September 2010 only 10 thousand, and in December, sales fell by 15%.

At this time, gaining momentum so-called "artificial" sale, where builders are transferred ownership to investors, brokers or insurers. The volume of sales increased from 12% of the total volume of sold real estate in September of 2009, up 43% in September 2010.

Even more negative situation on the market of Mumbai. On the decline in sales affected what the banks have changed the pricing policy: they are now providing loans up to a maximum 80% of the cost of housing, whereas before it was possible to borrow up to 90%. Besides prices since 2005 have tripled.

As experts predict prices in Mumbai decline gradually by 15-20% and will not rise over the next two years. However, developers are already accustomed to the high cost of real estate acquired by the investor-speculators, apparently, will try to keep the old prices. Make property more affordable and can be other methods, experts believe: sell the apartments smaller area.

www.zagorodna.com
Content tags: Overseas property
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