Real Estate Prices Not To Fluctuate In Spite Of Slowdown

Bangalore:  In India, the real estate property market is witnessing a slowdown in new residential launches, which is expected to continue for some time.  Whereas, the real estate price in metros like Mumbai and Delhi is doubtful to decline, as stated by Jones Lang La Salle, reports Vidyalaxmi of Economic Times.

Colin Dyer, Global CEO of international property consultancy Jones Lang LaSalle, stated that "In these cities, residential rates have already crossed and surpassed the peak levels. However, the inherent demand for residential properties in these cities is very high and supply is constrained," reports Economic Times.

Lately, the residential market has seen fewer new launches and the cost of inputs have also increased, which has dropped the profit margins of the developers. Dyer also added that "It is not likely that residential prices in Mumbai and Delhi will fall in the foreseeable future. On a more general note, there is a possibility in residential corrections in some cities, depending on the level of stress project developers are under at a company level, rather than at a project level.” In large townships and in the far flung suburbs there is a chance of price rationalization in case of projects, as the rate of residential space absorption takes time for projects in such locations.  

However, the real estate market of the country deals with many challenges which include increasing cost of liquidity, unavailability of land parcel in urban location, delays in project approvals, slow infrastructure growth and lack of transparency in real estate segment.