Realty sector has been undergoing a lot of change these days. First, it was demonetization that curbed the flow of black money in the sector. Next, the government introduced RERA Act that is expected to put developers on the line and deliver as promised. The lower than expected interest rates on home loans have also revived the interest of buyers.
In light of these, let’s see what’s in store for property prices in near future in metro cities.
Mumbai has been a witness of sky-high property prices in recent past. But a reset of expectations has happened due to demonetization and RERA and for now, property prices are expected to cool off for time being. It is also expected that sales of residential units will pick up as more and more developers launch affordable housing projects.
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Prices in NCR and Delhi will remain fairly stable. However, small price correction in far off areas of NCR cannot be ruled out as the inventory levels are far in excess of demand from genuine buyers.
Bengaluru continues to see an influx of people from around the country seeking better employment. So the property prices are expected to remain more or less stable in both new as well as resale property markets.
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Chennai & Kolkata’s residential markets are expected to remain dull in terms of new launches. Price revisions of existing inventory and lower home loan interest rates are expected to revive buyers’ interest in coming quarters. At a broader level, chances of big price correction in property prices are extremely low. As people sitting on sidelines continue to move in attracted by stable prices and low home loan rates, the property prices are expected to start their upward journey after a couple of years. So if you are a prospective buyer, then you should not delay your decision any further and start doing your homework for the property purchase.