India Real Estate Monitor

There is going to be a major price correction in the real estate market in the subsequent three months. Land owners and builders are holding on to the selling price of their properties due to the ongoing monsoon but post-monsoon, prices would nose-dive 15-20%. Builders and property consultants preach that monsoon season is considered to be a lean season for the real estate market when barely any buying or selling of properties happens.
Once the monsoons pass though, land acquirement cost will dip by 15-20% in the subsequent three months, and as a consequence, land owners will be able to enter into land deals at less significant cost. This is when the real estate market will see a price correction.
Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj says, “Nationally, the real estate market will witness a twenty percent dip in land acquisition costs in the subsequent three months. Till then, the market will continue to be stable. The price corrections will be seen after the completion of the monsoon.”
Real estate developer, Hemant Shah, chairman, Akruti City too preachs that the real estate rates will continue to be firm for the subsequent three months and will see price correction only after the monsoons. Abhishek Lodha, managing director, Lodha Group says that the real estate prices will continue to be firm in Mumbai even though Markets such as Delhi and Bangalore have started observing a decline in prices.
Talking on recent reports that real estate firms are defaulting on bank loans owing to a fall in the segment, Vakil comments, “It is due to some real estate developers have borrowed bank loans at far above the ground interest rates.”