How Southern Cities Dealt With Spiraling Realty Prices?

Bangalore: Real estate is becoming costly day by day in India. People are complaining about the price hike of properties in Indian cities. But, cities like Mumbai and Delhi, offer realty prices far beyond the expectations and prices are moving at a fast pace in these two cities than rest of the country, reports Sobia Khan & Ravi Teja SharmaSobia Khan & Ravi Teja Sharma of ET Bureau.

In contrast, realty prices in south India are stable as well as affordable. Surprisingly, from banks to first-time buyers to real estate developers are quite comfortable to deal with real estate sector in south India. According to RV Verma, chairman of the National Housing Bank (NHB), "For banks, Chennai and Bangalore are one of the best centres. They feel comfortable as these markets are stable and the potential for NPAs [non-performing assets] is lower," reports Economic Times.

Last year, the country witnessed drop in home sales but the downfall in sales has been more prominent in Delhi-NCR region and Mumbai, which is over 40 percent compared to last year. The reason behind this drop is because of expensive property prices and hike in home loan rates, which has restricted buyers at large. In comparison, home sales in south India were also down but the growth of IT sector has helped to balance the situation. Hariharan Ganesan, manager, research at property advisory firm Jones Lang LaSalle (JLL) India quoted that "Bangalore and Chennai are still more affordable compared to other big cities."