Real Time to Cut Realty Prices

Correction in property prices is needed owing to lesser demand. With the increase in input costs, high cost of capital and high rate of inflation, property prices are likely not to come down in the coming years, suggested classical economics.

This year, the launches of new residential projects were delayed further due to the uncertainties in places like NCR, Mumbai and Hyderabad. Considering that, Mumbai is seeing high number of unsold inventories mainly properties under price bracket of 1-3 crore. To resolve this situation, joint efforts from government, financial institutions and developers are necessary.

Besides, the demand for residential space in cities like Noida, Gurgaon, Pune, Chennai, Bangalore and Hyderabad will be relatively hit with the slowdown in the IT/ITeS sector.

However, the healthy demands for properties are those that are priced correctly. 'Flats worth Rs 30-75 lakh still selling' added Pranab Datta, Chairman, Knight Frank India.

In India, mid-30s is the average age for home buyers and the demand for housing units will remain unquenchable only if people have jobs in their hands.

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