Real Estate in India begins to decline in the market. Ambit Capital shows that prices on real estate property have been waning by between 7% and 18% in India's urban cities over the past year.
Realty Biz News says that in Delhi the real estate property prices have crashed by in so far as 25% for the past 12 months. In addition to the prices the transactions have also considerably gone down.
In smaller cities, the situation is even worst. Every year, the prices have to be changed as low as 20%. The sellers are having difficult time to get bids for the properties that have been listed for sale. However, the price correction has been expected since the real estate property prices have ballooned each year with an average increase of 20% for over a period of 10 years. The interest rate is still not included in the 20% increase.
This present condition of Real estate market in India has been forecasted by experts. They said that "the real estate bubble in India would eventually burst for the past two or three years. Due to the large gains in property values over the past few years, many people have taken out loans to take advantage of the 10 to 13% difference between interest rates and the property price increases."
First Post says that Indian real estate is already on the edge and is gearing towards its 50% crash in its prices. It has been noted that real estate in India are dreadfully expensive. In fct, properties are practically and unreasonably priced. It is difficult to own a property when one lives in India.
Looking at its rental yield, it is quite low. "Rental yields vary across the globe, but an average of 2 per cent of rental yield is considered a good deal for residential properties in India," Ashwinder Raj Singh, CEO - Residential Services of JLL India, said. There are only a few cities that have higher rental yield. These are the cities of Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Pune, and NCR-Delhi. "Investing in these cities will offer you the maximum returns on investment in properties bought for generating rental income," Singh wrote.
Business Standard reports new research has been conducted and it brought out the harsh realities of the real estate condition of the country, which holds no promise of quick revivals. Everything relies on " industry data as well as conversations with stakeholders and people in the government to say that further correction in property prices is waiting to happen to enable inventory liquidation."