Average property prices in 8 major Indian markets substantially decline, afflicted by COVID-19
In the first quarter of the year, the top eight areas including the National Capital Region saw a 5.4 percent drop
According to the news platform of the Economic Times ETRealty, the COVID-19 outbreak, which resulted in consequent lockdowns and international economic distress has prompted India to undergo a property price correction.
Data released by Liases Foras Real Estate Rating & Research uncovered that the top eight property markets in the country have gone through an average 5.4 percent drop in prices compared to a year before during the months of April to June.
Consecutively, the weighted average prices in tier 1 cities plummeted by four percent since the end of March. The National Capital Region endured a maximum price decline of around nine percent, while Mumbai Metropolitan Region, Bengaluru, Pune and Chennai went through a four percent slump each.
“Property prices have started to soften, as 44 per cent of projects are offering a discount ranging from five to 20 percent. With upcoming festive seasons, others will also have to follow suit because inventory overhang has crossed over 100 months due to impact on demand,” said the managing director at Liases Foras Real Estate Rating & Research Pankaj Kapoor.
The median price correction consists of cash discounts, online booking discounts, stamp duty and goods & services tax waiver, developers’ quoted prices and several other incentives. To date, more than 6,046 projects out of the total 13,428 have offered these discounts across the market.
More: India’s residential sales drop to decade low in just five months
In Mumbai Metropolitan Region, sales volume decreased by 63 percent, whereas Navi Mumbai dipped by 85 percent and Panvel market by 73 percent. The unsold stock grew by five percent in each of the central suburbs, by three percent in extended western suburbs and by two percent in extended central suburbs.
The National Capital Region, on the other hand, is considered as the worst-affected market since sales volumes tumbled significantly in every suburb, amounting to a 67 percent descent. Sales dropped a maximum of 85 percent in Faridabad, 76 percent in Gurugram, 65 percent in Bhiwadi, 63 percent in Greater Noida, 60 percent in Ghaziabad and 45 percent in Noida.
As the real estate industry in these major cities ride out the dire impact of the pandemic, we think it’s high time that we, the PropertyGuru Asia Property Awards team, finally recognise their efforts in building high-quality developments across the country.
If you know of any developers or real estate projects in India that deserve to receive our awards? Nominate them for the 1st Asia Property Awards (India) on or before 28 August 2020! Simply visit asiapropertyawards.com/en/award/asia-property-awards-india/ for more details.
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