Can we expect property prices to go down in coming 8-12 months

Q: should i wait as there are lot of new about property prices will go down

suresh, Apartment Resident

25th August 2015

Buying property in Palghar, Mumbai

palghar

vasai road project

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Yes, It will. But not in all markets. As above mentioned, the price fluctuations will be localized. Bangalore seems to be the only major market that is performing well. The buying trends in this market are positive. Inventory levels of builders in most part of the city are low and in general, there is a positive sentiment amongst the people. In Bangalore, most people buy houses with the intention of living there and not just as an investment.

Rameswari, Bangalore

27th August 2015

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Apart from this, other markets seem to be doing badly. Mumbai, NCR and Chennai are badly hit by this. It will take 4 years in NCR, 2 years in Mumbai and 18 months in Chennai to clear the unsold inventory at current absorption levels. These are not good signs. Though the prices haven't dropped, the number of transactions are decreasing Q-o-Q.

On the whole, I am expecting there to be a price correction in the Indian real estate market. A property price correction, NOT a market crash. For those thinking of investing in Real estate, my advice would be to wait n watch.

Vineet Tendulkar, Mumbai

27th August 2015

In the metros, specially in Mumbai, prices are probable to come down in some sectors. There is a huge amount of unsold inventory. In Mumbai alone there are 83000 unsold houses with a total value of 1 lakh crores. Now, the developers are playing a game of hide and seek and don't want to show loose face by reducing property prices. But i don't think that they can keep the momentum. Because some of them are paying as high as 60% in annual interest to keep their projects floating.

Abhijit Thanki, Mumbai

27th August 2015

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