Realty industry divided over property prices correction

Realty industry divided over property prices correction

Mumbai: Even as realtors are upbeat about growing demand in their sector, the industry stands divided over a possible correction in the skyrocketing prices of residential properties in major Indian metros.

Over the past few years, property prices in most of the Indian cities have appreciated by over 250% while the economy was growing at 8% annually.

“The spiralling price in real estate, especially in the residential segment, is a big concern today. Such a sudden rise in property prices is not sustainable and there is an immediate need for correction," Mahindra Lifespaces’ vice chairman, Arun Nanda, said.

Some correction in property prices is expected over the next few months, he said.

“A few builders have become greedy and are running a cartel. Those who have increased prices are not doing any business. There has to be a correction somewhere," Nanda said.

The government should come out with some special schemes for affordable housing so that builders can get land at reasonable rates, the Mahindra official said.

However, Niranjan Hiranandani, chairman of Hiranandani Developers, that is mainly in luxury and premium housing, said a correction in prices was unlikely in the near future.

He was, however, of the view that there should be housing schemes for all segments.