Homebuyers reeling under the burden of rising prices of homes can breathe easy as market trends have hinted at correction in the major residential markets in the country. According to market watchers, the prices of property in cities like Mumbai and Delhi are softening.
According to the property index presented by property portal makaan.com the prices in these two cities are either stabilizing or depreciating.
While Mumbai price index has seen a 2.4 per cent decrease in the month of December and a 7.8 per cent in the past quarter, there has been a depreciation of 3.6 per on annualized basis.
The Delhi property index has registered a minor drop of 0.9 per cent on a monthly basis and 3.4 per cent on yearly basis.
However, over the last three months, the Delhi Property Index has seen a drop of 9.4 per cent.
Although, the overall drop is not significant, there is a ray of hope that the present trend in Mumbai and Delhi NCR might continue due to inventory overhang. This is a welcome change for the home buyers who have been burdened by high property prices and home loan interest rates.
Observing the findings, Aditya Verma, EVP & COO, Makaan.com says, “The real estate market in Mumbai and Delhi-NCR is undergoing a small correction in property prices. But it remains to be seen if this correction is sustainable. Overall any correction would prove to be healthy and should be welcomed. It will encourage fence sitters to enter the market.”
At the national level, the property prices have remained stable largely. The National Property Index showed a drop of 0.3 per cent in December 2012. Property prices in Bangalore, Chennai, Hyderabad, Kolkata and Pune registered an increase of 3.6, 2.6, 7.0, 1.7 and 2.2 per cent, respectively.
The National Index saw a depreciation of 3.6 per cent on a quarterly basis. Over the last quarter – September 2012 to December 2012 – there are mostly upward swings in property prices across the cities other than Mumbai and Delhi. Bangalore (11.7 per cent), Hyderabad (8.9 per cent) and Pune (8.8 per cent) registered a rise where as Ahmedabad, Kolkata and Chennai remained stable.
As compared to the previous year i.e. December 2011, the MPI in December 2012 has remained in almost the same lines. Prices have been rising steadily, with minor highs and lows over the last year.
Over the past one year, most cities have seen a mix of appreciation and depreciation in property prices. Bangalore, Hyderabad, Ahmedabad and Pune registered a significant appreciation while Chennai and Kolkata property prices experienced depreciation.
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