Residential property prices set to dip as buyers stay away

Weighed down by a piling up inventory as customers stay away, property prices in India's key markets are slated to decline, while in other cities the trend is likely to be divergent.

Apart from the fall in affordability of customers, due to a rise in property prices and interest rates, the other reason is developers' fund requirement to complete the ongoing projects.

"There would be correction in residential prices of up to 5 percent in NCR (National Capital Region), and Mumbai could see correction of up to 20 percent, while prices in southern cities of Chennai and Bangalore are expected to be steady...," Pravin Malkani, president, Patel Realty India Ltd, told Reuters.

Patel Realty is a unit of Patel Engineering.

He sees the correction in Mumbai and Delhi setting in 4-12 months.

"Prices in Hyderabad would depend on the political situation, while it is steady at the moment," Malkani said.

Text and Images: Reuters