Indian property prices could fall 10-15% by Diwali
Indian real estate could become more affordable very soon.
Prices could fall by 10 to 15% by Diwali
New residential home prices could decline by between 10 to 15% by Diwali the Economic Times reports. Indian real estate companies that have accumulated huge inventories as sales dipped over the last two years, are under pressure from banks and investors to sell in order to generate revenues. Adding to the pressure is a growing mountain of debt, over Rs 38,000 crore for the top 11 builders.
Indian property market cannot sustain the current price levels
“The property market cannot sustain the current price levels. Mumbai and Delhi are the most investor-driven markets. This is where the first crack can come from,” says VK Sharma, chief executive officer of LIC Housing Finance, the state-owned insurer which commands a large chunk of the country’s home finance market. A 10% price correction is likely in Mumbai and Delhi around the festival season, as that is the only way to revive sales, Sharma says.