Property rates headed south!

Realty rates are sliding all over the country. There is already a down in property prices by 15 per cent in Chennai, for instance. In Mumbai, the market is sluggish — sales have slowed down — but it is holding out bravely.

Global realty firm Knight Frank’s latest residential market review says there has been a price correction of nearly 15 to 20 per cent across the National Capital Region, particularly in Gurgaon and Noida, due to inflation and high interest rates.

Pranay Vakil, Knight Frank’s India head, says, “The price slash is also due to the problem of oversupply in this area and the decrease in the number of buyers.”

Areas like Greater Noida and Faridabad will also face price correction on account of the large number of houses/flats expected to be available soon.

Ankur Srivastav of DTZ, a leading real-estate consultant, says there is going to be a surplus of accommodation in the premium-segment brand — in the price bracket Rs 75 lakh and above — in the next 18 months.

"There are a dozen premium projects coming up in Gurgaon and Noida," he says. "Once they are completed, they will increase the pressure on prices."

However, many industry people don't think the market is going down.
According to them it happens every year around this time.

The buying season starts in September, around Diwali. If prices start climbing again, the current correction would be just that: a correction. But if the slide continues, that would be end of the big property boom.

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