There has been a fall in the real estate housing sector in 2012. Housing segment significantly slowed down in the top seven cities of India, reports JLL.
With the minimal rise of capital value by 1-3 % the housing segment loses value appreciation in all the major cities of India, reported real estate consultant Jones Lang LaSalle India (JLL).
JLL India’s Chairman and Country Head Mr. Anuj Puri said that the year 2012 was a sluggish year for the real estate sector. Moreover the year 2012 was sluggish in all terms of economic growth. He pointed to the high interest rates and poor industrial productions as reasons for this sluggish Indian economy. Inflation adversely affected the investors’ sentiments and interest. It affected all the businesses and especially real estate.
The real estate consultant reported that in 2012 a total of 1,60,622 residential units were delivered in seven top cities of the country. The 2011 number reached only 1,54,701 which is far less than the present year’s number.
These housing units were delivered in top cities like Delhi-NCR, Bangalore and Mumbai. The real estate consultant had also had counted the housing units in other main cities like Kolkata, Hyderabad, Chennai, Pune and so on.
Mr. Puri said that residential capital values in the current year are appreciated only by 1 to 3 %. Among the top Indian cities NCR-Delhi and Pune had the highest rate of value appreciation. Meanwhile the value appreciation was slower in Hyderabad and Bangalore.
Jones Lang LaSalle reported that there has been a slight increase in demand. Especially in the festive season the demand had grown up. Yet in comparison to larger number of real estate projects, the builders have many unsold residential projects at hand.
The real estate developers are found attempting to offload their unsold real estate inventories by reducing prices and even with some discounts. Some of the real estate developers resorted to out-of-the-box marketing methods to gain the attraction of home buyers and real estate investors.
Mr. Puri cleared that despite all these efforts of the real estate builders there is still no improved price appreciation in any of the top cities in India.