more clarity on growth of the economy,” said Zia.
The National Housing Bank’s Residex data that was released in September showed that the residential prices for the quarter ended June 2013 softened across the country. Of the 22 out of 26 cities that were covered by the index witnessed a fall in the housing prices in the quarter ended June 2013 over the previous quarter.
It was not only the tier I cities but even the tier II cities witnessed a correction in residential prices. Ludhiana witnessed the biggest correction of 6 per cent during the quarter while Indore and Vijaywada were next in line with prices falling by 5.6 and 5.4 per cent respectively. Prices in Delhi and Mumbai too softened by 1.5 and 0.5 per cent respectively.
While there is an opportunity for home buyers to look out for a good bargain, investors can also look at this market to make their move as they may get decent returns in the longer term.
“Unlike real estate markets of more developed economies, India’s urban sector is yet to reach saturation levels. It is also important to keep in mind that there is still significant latent housing and infrastructure demand in the country’s urban centres, which is currently being overshadowed by the prevailing uncertainty in our economic climate,” said Magazine.
Given the state of affairs within the industry, while one cannot rule out more price corrections, it may not be a good idea to wait forever. Do not expect a blanket correction in residential prices as it will only be in pockets of various geographies that are facing an oversupply situation.