Price Appreciation in Housing Segment Slowed in 2012

Bangalore: Top seven metros in India have witnessed slower price appreciation in housing segment in 2012, where the average capital value have increased only by 1-3 percent, according to a property consultant Jones Lang LaSalle (JLL) India.

"2012 was a sluggish year in terms of economic growth, largely because of high interest rates and poor industrial production. Inflation remained high, impacting sentiments and investor interest across businesses - including real estate, said Anuj Puri, Chairman and Country Head, JLL.

The seven top cities in India have witnessed a lunch of around 1, 60,622 residential units this year compared to 1, 54,701 units in the same period last year. These seven top cities are Delhi-NCR, Mumbai, Pune, Chennai, Hyderabad, Kolkata and Bangalore.

According to Puri, "From the pricing perspective, the average residential capital values in 2012 appreciated in the range of 1-3 per cent year-on-year.”

However, cities like Pune and Delhi-NCR have received the highest growth in capital value, whereas, cities like Hyderabad and Bangalore have witnessed slower capital value.

"There is still no price correction on the cards, but the quantum of appreciation definitely reduced significantly in all the top seven cities of India in 2012," said Puri.

With the arrival of the festive season, the demand for housing witnessed a bit of improvement but simultaneously, developers are still facing challenge to complete their upcoming inventories, according to JLL.

However, developers are coming up with innovative marketing strategies and freebies to attract home buyers and to sell off their existing stock, added JLL.

With PTI inputs