By Accommodation Times News Services
Home buyers to get a sigh of relief as property prices are coming down by 7-18 per cent year-on-year. According to a report by brokerage firm Ambit Capital, as per the data from property websites suggests a deeper slowdown in India’s large cities, with prices falling by 7-18 per cent year-on-year.
The report further says, that the downfall of prices comes in the wake of banks tightening their purse strings to developers and government remains committed to its effort to reduce black money, it added. The result is not just a drop in demand for building materials and challenges for lenders with big mortgage, housing finance books, but also a generalised slowdown in GDP growth.
The report said, “After visiting to five property registration offices in Mumbai, the survey suggests a sharp drop in the registration of new residential properties and data from property valuers in Maharashtra and Tamil Nadu suggest that transaction volumes have fallen by 10-15 per cent per annum for three consecutive years now. Also, new launch volumes are down 40-80 per cent on a pan-India level.”
The report also pointed that some prime parts of cities such as Delhi have already steep price correction at 20-25 per cent and smaller cities such as Jaipur, Rajkot and Lucknow have seen a 15-20 per cent correction on a yearly basis.
Data from property research houses suggest that regions such as Mumbai and Delhi would take as much as 11-14 quarters to clear the existing inventory. Discounts have increased significantly in the secondary transactions market and distressed real estate liquidation by lenders, who have not been repaid by developers, is becoming increasingly common.