Will Property Price Come Down In The Near Future?

Many expect a further correction in home prices in India. Since the volumes of property transactions are going down, hence the asking price for property will also go down. Additionally, over-supply of property is posing as a major reason for the slow down in Real Estate prices.Recent media reports have also suggested the same trend. Reports suggest that Real Estate Prices in Mumbai, Bangalore, Pune, and National Capital Region have corrected 15-20% in the first quarter of this year. Market-watchers say that this trend will be repeated across the Tier II cities and suburbs too. No wonder property developers are wooing prospective users with all sorts of offers. Some are even offering lower EMIs for flats while some are offering goodies like cars along with property. Still others are wavering off the stamp duty prices.
Are the property prices coming down in your area? Is the property slow down really impacting the end user in a major way? Should the home seekers cheer for some reasons? Is there a possibility of a market dive? Or is this a temporary phase in the housing segment?

10 Comments

  1. Real Estate India
    Posted May 27, 2008 at 6:42 am | Permalink

    I think this is a temporary phase being experienced in the real estate market and will be corrected within 6 months or so.One cause of this can also be attributed to the sub-prime mortgage crisis in the US, which is indirectly affecting the Indian market as well.

  2. Posted May 28, 2008 at 6:26 am | Permalink

    All the person have same question but it cann’t possible at present.Rates may be down in coming 2 years which will be given the bad impact in the Real Estate market.

  3. AK
    Posted September 17, 2008 at 5:28 am | Permalink

    REAL ESTATE IN INDIA IS GOING TO COLLAPSE IN VERY NEAR FUTURE.IT HAS ALREADY STARTED IN US AND UK. TRY TO GET RID OF BY SELLING NOW. RUSH.

  4. RAJENDER BHAMBHU
    Posted October 10, 2008 at 12:27 am | Permalink

    Property prices are at all time high.. According to today’s price one middle class man cant buy a decent home even when he is earning 50k per month. So to whom u will sold your house if he cant buy that one with his earning.

    So this all thing will definately come down. Price correction will be 50% of current value in next 2 year. So making a fixed deposite will be better choice if u want to make an investment.

  5. sanjay mathur
    Posted October 24, 2008 at 2:57 am | Permalink

    Now the real estate industary is facing a very tuff time, Thousands of flats/properties are looking for buyers. lots of invstors are in trouble, they are not getting buyers for their properities. But surprisingly, I am not able to understand when builders are not able to sell their propoerity, why they are not ready to reduce their prices, It is very difficult to a medium class person to buy a 75 lacs to 1.5 Crore flat.

    I felt the builders should reduce their prices, than buyer may return to their counters. And builders should also understand that in this market scenerio only real buyer will drop down to their office.

  6. Posted November 19, 2008 at 12:10 pm | Permalink

    According to me real state’s market in india will decline bcoz ther is no liquidity in the share bazar , banks and major industries of india are uder a loss of 40 – 50 % .. so ther is bad future for india and indians until the liquidity in the bazar increases

  7. Rocky
    Posted November 20, 2008 at 4:35 pm | Permalink

    Wait for 6 months to 1 yr – property prices will go down by 30-40%

  8. vineet
    Posted February 9, 2009 at 6:23 am | Permalink

    alll builders are making fool of public.as retretchment is in full swing they will not find any buyers.one will save his job or buy a home.they should come on real prices untill it got late.

  9. sumon
    Posted March 31, 2009 at 1:23 pm | Permalink

    In Calcutta – apartment prices are still way to high to be able to sustain for long term. One decent apartment still costs around 80 lakhs(1400 sq ft, south city), where even people working in IT get paid around 7-8 lakhs/yr(higher end, salary range starts probably much below like 2 lakhs). So, mostly these apartments are purchased by local businessman and people working in USA. But with sharp fall of stock price coupled with huge job loss, a significant percent of NRI will not be in a position to buy more. Also, recently supply of apartments increased a lot, so with constant or declining demand prices have to fall. Builders have to sale with deep discount price, but it might take a long time initially (because they will try to hold on as long as possible), but then prices might start falling by a rapid rate.

  10. raju
    Posted May 6, 2009 at 11:21 am | Permalink

    Reality prices are set to fall in coming years. But sure to come back up after couple of years. First of all house is just like any other consumer good. So, its worth what it costs to build an house + the profit of the builder. As all prices of construction materials have fallen, it takes less to build an house now than it took 2 years ago. So, housing prices have to fall. High prices were just driven by low interest rates in 2003-2006. Interest rates increased and bubble burst. People used take low interest rates and buy houses hoping to sell at high prices. But they forgot one important thing bubbles thrive in low interest rate environments. Up goes the rates down goes the bubble.

    However, the most affected people will be those who bought flats and the builders will be wiped off for sure. People who bought individual houses are well off as they have the land to go with it. All in all in this credit contraction environment reality prices will continue to go down

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