Real Estate decline in India

HT reports a sharp decline in Real Estate rates in India, in certain areas. Now that's welcome relief for most Indians who were subject to skyrocketing rates. In fact most people were expecting a correction in the Real Estate market rates. India’s once-buoyant real-estate market has now gone into a deep freeze with more than a 50 per cent drop in actual transactions over the last two months, developers and real-estate analysts have said.For the first time in three years some developers have dropped rates to bolster demand. A nation-wide survey reports a drop of between 5 to 10 per cent in rates across edge suburbs like Kharghar, in Navi Mumbai, Greater Noida in the National Capital Region and Bangalore’s Hosur Road.

Developers on the fringes of the big cities have found it hard to hold the price line. Cheaper land also allows them greater freedom in fixing profit margins. However, within the metropolitan cities, developers have withstood the plunge in sales and held their price lines. In prime locations and exclusive buildings, the price spiral is intact.