Real estate prices drop in major metropolitan cities except Mumbai

Property cost in the major four cities of India, Delhi NCR, kolkata, Chennai and Bangalore slipped by 1% as compared to property prices a year ago. A fall of 3% was reported in the Delhi and kolkata, while in Chennai and Bangalore prices dropped by 2%. The above findings are of an real estate advisory firm, Liases Foras Real Estate Rating & Research Ltd.

As per the released report, the prices of properties in Mumbai Metropolitan Region(MMR) remained same while prices in Pune, Hyderabad and Ahemdabad surged. The report also stated that Delhi NCR was the only region which witnessed the fall in sales. In the third quarter of this fiscal, Home sales went south by almost 17% in Delhi NCR. The period recorded sale of 13,279 units, much lower than the earlier sales.

Earlier, the real estate industry experts speculated a dip in real estate business due to the GST and Real estate(regulation and Development) Act (RERA) 2016, but increase in limit of size of flat for subsidy under Pradhan Mantri Awas Yojana (PMAY), extension of Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) and others have definitely negated the negative effects of the GST and RERA 2016 on the real estate business.

On being asked whether the interested buyer should buy property is the current scenario Pankaj Kapoor, managing director, Liases Foras, answered “If you are looking to buy a property for end use, you need to check the builder’s past deliverable records. Since there is a lot of ready inventory available you can consider buying ready-to-move-in houses and also save on GST. Here the execution risk gets nullified. Ensure that there is RERA registration.”

He further advised on the analysis that a sane buyer should do some analysis before buying or investing into a property. The investor should do proper analysis about cost the house, cost of the loan and the charges incurred due to the legalities and other miscellaneous cost. Also, the buyer should take into cognizance the factors like affordability and problem associated with property being non-liquidity asset.

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