Housing Segment fell in 2012by bigger margins. The reports from all the top cities of India show the same, JLL India states. Real estate consultant Jones Lang LaSalle India (JLL) reported that housing segment loses value appreciation in India.
The market in 2012 was highly sluggish especially the real estate market. The period witnessed slow rate of economic growth. Mr. Anuj Puri, Chairman and Country Head at JLL India, said that higher interest rates and poorer industrial productions as reasons for this situation.
Inflation unfavorably affected the sentiments and interests of real estate investors. It affected real estate badly.
JLL figured that in 2012 a total number of 1,60,622 housing units were delivered. The figures are made on the basis of seven top cities of India. The previous year had produced only 1,54,701. Thus the current year’s number is more than the previous year’s number.
The number shows only the housing units delivered in top Indian cities. The selected cities are Delhi-NCR, Bangalore, Chennai, Pune, Mumbai, Kolkata, and Hyderabad.
As per Mr. Puri’s revealing, residential capital values in the current year are appreciated by a mere 1 – 3 %. NCR-Delhi and Pune had the highest rate of value appreciation among the top cities of India. Meanwhile Hyderabad and Bangalore had the slowest rate of value appreciation.
There has been a slight increase in demand especially in the festive season. Comparing to the larger numbers of unsold real estate projects this demand remains insufficient, Jones Lang LaSalle reported.
Showing the increased cost of production, the real estate developers are not able to reduce the amount. Yet the higher number of real estate projects force them to divest their unsold properties at lower rates or with some discounts.
It is found that some real estate builders resorting to out-of-the-box marketing methods. It aims to gain more home buyers and real estate investors. The JLL report said that their efforts remain insufficient to boost the interest of the home buyers. Despite all these tremendous efforts, there is still no improved price appreciation in any top cities in India.
