The real estate market of India has seen some hard times in the past few years. Faced with liquidity crunch and piled up inventory, the real estate players have had a hard time patching up immense losses and the customers too have suffered. The skyrocketing property prices were a major reason why customers were staying away from investing in real estate. For those of you who have been waiting since a long time to make an investment, here is some good news. Many major Indian cities have seen a fall in property prices, making your distant dream of owning a property one step closer to reality.
Makaan has presented a survey displaying the changing property trends across the major cities in India for a period of one year, i.e., from March 2015 to March 2016. The figures bring positive hope for buyers as properties in almost all cities have witnessed a price reduction. Mumbai saw the largest fall in prices of 60.47%, falling from Rs. 8833/ sq. ft. to Rs. 3372/ sq. ft. Mumbai was followed by Ahmedabad recording a fall of 54.24% (Rs. 3557/ sq. ft. to Rs. 1619/ sq. ft.), Kolkata recording a downfall in prices of 49.68% (Rs. 3927/sq. ft. to 1926/ sq. ft.) and Delhi NCR which saw a decrease of 43.36% (Rs. 4551/ sq. ft. to Rs. 2642/ sq. ft.). Other cities like Hyderabad, Bengaluru, Chennai and Chandigarh also witnessed property price depreciation with 37.88%, 37.82%, 34.4% and 25.53% decrease per square feet respectively.
However, with a major trend of price depreciation, some regions also experienced an increase in property prices. Two of them include Pune and Lucknow. While Pune saw an increase of 9.17% (Rs. 5650/ sq. ft. to 5996/ sq. ft.), Lucknow witnessed a price appreciation of 7.47% (Rs. 3047/ sq. ft. to 3336/ sq. ft.).
These figures are nothing less than a piece of good news for all those aspiring investors who have been waiting a long long time to find the right prices to invest in. The aforementioned figures clearly indicate that at the moment the best city to invest in is Mumbai which has seen a whopping 60.47% downfall in property prices. After Mumbai, buyers can opt for property in Ahmedabad, Kolkata and Delhi NCR which have also seen significant price cuts in property. These regions are now pulsating with unsold inventory which the buyers can purchase at an all-time low price, making them the best investment destinations across the country. This will also usher hope for the buyers and for the whole real estate sector in general as the low property prices will attract a large number of buyers, thanks to the positive statistics.
Favouring these property price trends is another development in the real estate sector. The Real Estate Regulation and Development Bill has finally been passed by the Rajya Sabha, sending a massive wave of cheer in the sector. The Real Estate Bill will protect the interests of home buyers by holding builders responsible for any default and penalising them with a hefty fine and prison term. Real Estate Regulatory Authority or RERA will be set up in each state to regulate the sector of corruption and streamline the process of approvals and documentation. With these positive signs, the Indian real estate sector is on the verge of stability and is hoped to experience some winds of positive change for all participants.