After a free bull run for two years, the booming real estate market seems to have lost some of its steam. Property prices, which were in ever escalating mode, have begun to slide if not crash. This correctional or cooling off phase is the overheated property market has led to the fears of property meltdown.
The recent firming up of home loans rates, lack of end consumers in the real estate market, and the downward trend of the real estate rates has forced to consider other avenues of investment and has increased the number of people participating in REal Estate Investment in India.
The bull run of the real estate market is over; the bears are taking over. In a panoramic view of the market, the residential property prices in the major metros are down by 10 – 15%, while the commercial market too has witnessed some stagnation, even in locations like Whitefield, Bangalore, where the rates have reached a plateau at Rs. 2,300 per square foot during the last year. The scenario is worse in the tier – II & tier III towns like Jaipur, Mohali and Ludhiana, where property prices have been steadily slipping, and could well come down by as much as 20 – 25%.
Well, this sums up the prevailing scenario of the real estate slowdown and the cooling off of property prices across different locations in the country, particularly in overheated pockets – a direct result of the spiralling land prices, compounded by rising input costs and multiple hikes in home loan rates.
1 post, 1 voice
KellyCarol44 writes, Sep 4, 2008: (1 post)
After a free bull run for two years, the booming real estate market seems to have lost some of its steam. Property prices, which were in ever escalating mode, have begun to slide if not crash. This correctional or cooling off phase is the overheated property market has led to the fears of property meltdown. The recent firming up of home loans rates, lack of end consumers in the real estate market, and the downward trend of the real estate rates has forced to consider other avenues of investment and has increased the number of people participating in REal Estate Investment in India. The bull run of the real estate market is over; the bears are taking over. In a panoramic view of the market, the residential property prices in the major metros are down by 10 – 15%, while the commercial market too has witnessed some stagnation, even in locations like Whitefield, Bangalore, where the rates have reached a plateau at Rs. 2,300 per square foot during the last year. The scenario is worse in the tier – II & tier III towns like Jaipur, Mohali and Ludhiana, where property prices have been steadily slipping, and could well come down by as much as 20 – 25%. Well, this sums up the prevailing scenario of the real estate slowdown and the cooling off of property prices across different locations in the country, particularly in overheated pockets – a direct result of the spiralling land prices, compounded by rising input costs and multiple hikes in home loan rates.