Knight Frank India, a real estate consultant company, predicts more correction in house prices if the existing slowdown in residential property sales keeps on, Chairman Pranay Vakil said.

“(In) residential, there is a slowdown. The volumes of dealings are low and it is a precursor to prices going down. In a lot of speculative areas, prices have already gone down. If these things continue for further 2-3 months, it is very probable prices will come down for residential segment,” Vakil said, adding sales volumes traditionally drop in June.

His remarks come at a time when there are concerns over a probable slowdown in demand for residential real estate because of high interest rates, oversupply, and funding issues.

Real estate developers for example Brigade Enterprises had said the company observered a 20 % slowdown in house unit demand in south India in January-March.

Media reports also suggested that prices in Mumbai, Bangalore, Pune, and National Capital Region have corrected 15-20 % in the first quarter of this calendar year.

Due to mismatch in demand and supply on commercial office space, rentals are likely to remain high for further 6-12 months, Vakil said.