Property Prices go south in 7 cities
Rising interest rate coupled with slowdown in demand has caused significant decline in the prices of residential properties in the first quarter of 2011.
Mr. RV Verma, Chairman and Managing Director of NHB, has released a report on residential housing price index or “Residex” showing the decline in 7 major cities. The data released shows that housing prices fell the maximum in Kochi by 14.92%. The other 6 cities where prices fell where Bangalore (12.87%), Faridabad (6.37%), Hyderabad (6.37%), Surat (3.76%), Bhopal (3.55%) and Jaipur (2.63%).
Cities that reported a marginal price rise are Ahmedabad, Chennai and Mumbai. Cities of Pune, Lucknow and Delhi saw a considerable price increase ranging from 5% to 2%.
Further it is said that NHB wants to add 5 more cities to its reporting of “Residex” data in the near future taking the total list to 20 cities. It is widely expected that Coimbatore would be part of the new 5 cities added to the list.
Since the property price of Chennai shows little change it is prudent to look out for a flat now instead of postponing the decision any further if an individual has any plans to purchase immediately. However what remains to be seen is if there would be a further hike in the interest rates which according to some experts have already hit the roof.
(From our Raindrops Promoter’s newsroom)