12:16 AM
aditimalhotra502
Aspired to buy a house but could not afford it? Finally, there is some good news for you.
The latest Residex released by the National Housing Bank on Friday shows that property prices rose only in six of the 15 cities covered by the residential properties price index -- which is a situation similar to what was seen at the height of the global financial crisis. It was only Mumbai, Delhi, Ahmedabad, Chennai, Lucknow and Pune that bucked the falling trend. The steepest increase was seen in Pune, where the index rose just 5%. In contrast, Kochi (14.85%) and Bangalore (12.87%) saw the sharpest correction between October-December 2010 and January-March 2011.
So, what caused this? As demand came back with gradual economic recovery in India, realtors (real estate agents), some of whom were facing severe debt problems, started raising prices to cash in on the opportunity. Things went to the extent of prices in certain cities moving well past the pre-crisis levels. If one were to use Residex as the gauge, then there were only four cities -- Delhi, Hyderabad, Jaipur and Kochi -- where the index was lower than July-December 2008.
While prices were becoming unaffordable in many parts of the country, the Reserve Bank of India's repeated rate hikes also made purchases more expensive.
The latest Residex released by the National Housing Bank on Friday shows that property prices rose only in six of the 15 cities covered by the residential properties price index -- which is a situation similar to what was seen at the height of the global financial crisis. It was only Mumbai, Delhi, Ahmedabad, Chennai, Lucknow and Pune that bucked the falling trend. The steepest increase was seen in Pune, where the index rose just 5%. In contrast, Kochi (14.85%) and Bangalore (12.87%) saw the sharpest correction between October-December 2010 and January-March 2011.
So, what caused this? As demand came back with gradual economic recovery in India, realtors (real estate agents), some of whom were facing severe debt problems, started raising prices to cash in on the opportunity. Things went to the extent of prices in certain cities moving well past the pre-crisis levels. If one were to use Residex as the gauge, then there were only four cities -- Delhi, Hyderabad, Jaipur and Kochi -- where the index was lower than July-December 2008.
While prices were becoming unaffordable in many parts of the country, the Reserve Bank of India's repeated rate hikes also made purchases more expensive.
Posted in: property india,property prices,real estate agents
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