Cost of housing may come down by 30 percent in a year
Posted on: 25/Nov/2016 5:49:10 PM
There is a strong likelihood of the housing prices in India’s major 42 cities to come down by 30 percent in the next 6 to 12 months.
The company Propequity has informed that because of the above-expected cost reduction by 30 percent, the stock value of the constructions built from the year 2008 will be likely to go down to Rs. 8 Lakh Crores.
For this analysis, 83650 residential construction projects undertaken by 22202 developers in India’s 42 cities were taken into consideration. The stock value which was Rs, 38,550,44 Crores, has come down by Rs. 8 Lakh Crores and now is at Rs. 31,521,70 Crores.
With the demonetization measure implemented, the unsystematised real estate business sector is likely to be affected very severely.
On an average, only one out of every 5 buyers of real estate pays by cheque while buying the property. There may be a short-term recession in this sector. Also, the second-hand selling of residential properties will be down in this short-term period. It will take some considerable time for this scenario to change positively.
However, the systematized construction business sector will be on a better business performance in the next 9 to 12 months. Though there may be some short-term problems, Propequity observes that good transparency will evolve in the real estate business sector in the long range.
