2012 was a dull year for property markets. Price appreciation in this year slowed with the top 7 cities witnessing a rise of only 1-3%. Highest rise was seen in Pune and NCR. However, Bangalore and Hyderabad saw a modest rise in property prices. Though there was no price correction which was widely anticipated slowdown in price increases is more than welcome. It is interesting to note that despite launching 160,000 odd residential units prices in India's top seven cities did not correct. This number is higher than about 154,000 odd units that were launched in the previous year. No correction despite heavy supply signifies that the demand for real estate in the top seven cities of India is really high. However, in some cities like Mumbai prices have reached unsustainable levels. Thus, it would not be wrong to assume that the prices might correct sooner if not later. ( J Mulraj)
Tuesday, December 4, 2012
2012 was a dull year for property markets
2012 was a dull year for property markets. Price appreciation in this year slowed with the top 7 cities witnessing a rise of only 1-3%. Highest rise was seen in Pune and NCR. However, Bangalore and Hyderabad saw a modest rise in property prices. Though there was no price correction which was widely anticipated slowdown in price increases is more than welcome. It is interesting to note that despite launching 160,000 odd residential units prices in India's top seven cities did not correct. This number is higher than about 154,000 odd units that were launched in the previous year. No correction despite heavy supply signifies that the demand for real estate in the top seven cities of India is really high. However, in some cities like Mumbai prices have reached unsustainable levels. Thus, it would not be wrong to assume that the prices might correct sooner if not later. ( J Mulraj)
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