Indian Real Estate Markets See Low Price Appreciation In Third Quarter In 2013
Prime realty 
markets in India such as Mumbai and Delhi NCR witnessed a marginal increase in property prices in the third quarter this year. This is majorly due to lack of new launches as well as a cautious approach of buyers towards the realty sector.
Stagnant property prices
While Mumbai saw a marginal increase of 3% in property prices during the third quarter of 2013 compared to the second quarter, prices in Delhi NCR remained almost stagnant. Both regions however saw a growth in capital values on year-on-year basis compared to the third quarter of 2012.
Mumbai is suffering from issues such as expensive housing and limited new project launches. Most of the project launches are in the high-end segment, where there is limited demand. Launches in the low and mid-segment are very limited while the projects remain expensive. This has affected the price appreciation here. Delhi is affected by multiple factors such as huge decline in new project launches and cautious financial market sentiments. Delhi saw a decline of 33% in project launches this year compared to last year.
Southern regions such as Bangalore, Hyderabad and Chennai too are following into the foot steps of Mumbai and Delhi. All these three regions saw no change in capital appreciation over the last quarter. Kolkata was the only prime real estate region in India which saw the highest increase in property prices in the last quarter with 4% appreciation.
Year-on-year price appreciation
While the cities saw little price appreciation compared to the previous quarter, they saw a decent year-on-year appreciation compared to the third quarter in 2012. Bangalore saw the highest price appreciation with up to 50% in Central Bangalore, followed by Chennai with an appreciation of 27%. Mumbai saw a growth of 13% and Delhi NCR saw a growth of 8% in prices. West Bengal saw a growth of 11% on a year-on-year basis.
According to real estate consultants, real estate markets may witness price appreciation if enough projects are launched with attractive pricing. This will break the current wait-and-watch pattern and bring vibrancy to the otherwise stagnant market, which can lead to price appreciation.
