Price correction in realty residential segmentPrice correction in realty residential segment
Apnaloan.com Research Bureau
11 May 2008
Real estate prices seem to have witnessed the much expected and awaited price correction and the prices seem to have fallen across the country by about 15-20 per cent in the residential segment.
In areas such as Mumbai, Chennai, Bangalore, Pune and the National Capital Region (NCR), there has either been a fall in residential prices or they have not shown an increase in the last three months.
In other areas such as Gurgaon, the realty prices have dipped by 15 per cent while the plot rates have come down by 20 per cent in Noida. In Greater Noida the plots which were selling at Rs. 55,000-60,000, have come down to Rs.40,000 to Rs 45,000. In Indirapuram, the rates of flats have come down to Rs. 2,500 to Rs. 2,700 per Sq. Ft. from Rs. 3,000 to Rs.3,200 per Sq. Ft. .
Even in prime areas in Delhi such as Friends Colony, Maharani Bagh, GK I & II, Prithviraj Road and Hauz Khas, there has been a fall of 5-10 per cent.
In Mumbai, prices at Colaba, Cuffe Parade, Central Worli, Bandra and Juhu have been stable in the last three months. There has been no increase in land prices in Bangalore, Hyderabad and Chennai. In Pune, localities like Kalyani Nagar have shown a dip of 15 per cent in residential values in the last 3 months.
Real estate consultants and advisors say that the price correction or slump was expected, as a result of high prices and spiraling interest rates.