New Delhi: Real estate rates in Kochi have seen the maximum price drop of 14.85% in the Januray-March period compared with the preceding three months among Indian metros and tier II cities, according to the National Housing Bank’s (NHB) Residex-an index of property prices.
Almost eight cities have seen slight correction in the Janurary-March period. Bangalore and Faridabad followed Kochi with a drop of 12.87% and 6.25%, respectively.
“Property prices in these cities seem to have reached a certain peak value from where they have dropped,” RV Verma, NHB chairman and managing director, said on Friday.
“Inflation and rising interest rates have led to slackening of demand for housing. This scenario is putting pressure on builders to bring down their rates to push sales and increase demand.”
The NHB Residex, which was launched in July 2007, measures property prices every quarter. The index currently captures data submitted by a variety of sources, including housing finance companies and real estate agents, for 15 cities, with plans to widen the index to 63 so-called tier I cities and state capitals in the future.
Six cities among the 15 have seen a slight upward movement in and Mumbai saw an property prices - among them, Delhi saw an increase of 2.4% increase of 1.1%.
“We will be adding five more cities in the coming months,” Verma said. “We have recently held meetings with all stakeholders over this. We will announce the names of these cities once we identify them and come out with some data on these.”
Compared with the year-ago period, property prices have risen.
“The cost of land is high in smaller cities too. Tier II cities such as Jaipur, Bhopal, Surat and Faridabad are still witnessing infrastructure growth. This restricts the supply of land in these cities, which further puts pressure on property prices,” said Samarjit Singh, managing director of Delhi-based real estate consultant firm, Agni Property.