Housing has suffered a fall in sales by about 30% since the last year in seven major cities (Delhi NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune) due to expensive flats and higher interest rate, CBRE said.
Delhi faced the fall of housing sales the most as it is one of the nation’s most expensive cities. This slowdown was noticed in all sorts of housing segments, from premium/luxury to the high-end/mid-end.
Many companies are hesitant in launching new projects in the markets thinking it to be in their good interest and benefit to observe the market and wait for an appraisal before investing. They are majorly concentrating on reducing the existing inventory pile-up.
This might be a sign for those imposing high property prices that the prices need to be rationalized within the budget of a common man with an average per capita income rates.
The downfall of the prices was recorded to be 25% in the previous year. Housing prices have skyrocketed which has led to the decline in the purchasing. With the ever-increasing expensive nature of every product it the market, most buyers find it hard to find it in their budget to buy a house or apartment of their choice and budget.
Even though housing sales have seen some decline in new project launches, tier I cities are still continuing to lead the housing landscape towards profit, with Delhi, Mumbai and Bangalore having a sell out of about 70% of the entire supply addition which has been recorded during the previous year.
So what needs to be seen and done is that the prices should be nominalised so that the dreams of a common man of owing a house can be made true.