Mumbai and Delhi home property markets have failed to look up in the second quarter of 2015, according to Business Standard.
The value of properties across Mumbai, Delhi, Gurgaon and Noida had either "remained static or risen very nominally" and there were hardly significantly launches during the second quarter, based on the gathered data of Colliers International India Research.
In Mumbai, the central suburbs and western suburbs remained unchanged. Premium properties that are for rent remain stable. While capital values in the most expensive and southern part in the city, including Malabar Hill, Altamont Road, Breach Candy, Napeansea Road rose by just one percent in April- June against the previous three months. Mumbai Metropolitan Region has now an estimated at nearly 170,000 units unsold.
However, there's an approaching festiva; that can possibly help in the Mumbai market. Colliers said, "Capital values are unlikely to see any price correction and rents will remain stable in the medium term."
As for Delhi's prime lease market, Colliers has described it as stable. There were no major launches while rents declined by three to five per cent in some premium micro markets. Although experts believe that there might be possible traction during festive season in Delhi, still, capital values are expected to remain stable.
In Gurgaon's capital and rental values remained stable, DLF-I's rents rose by five percent. Meanwhile, despite Noida offering discounts and freebies, they still have low sales volume. However, they saw a marginal increase in rental values.
Colliers believe that "investors were still staying away from buying in the anticipation that prices would be reduced further." However, they pointed out that users will eventually buy units with affordable prices and freebies. As of the moment construction projects were said to be sluggish. Their study pointed out that "with volatility in the stock market, we expect investors will relook at the residential realty sector, and with improving economic sentiment we expect sales to improve in the affordable segment homes."
