On Sequential basis, weighted average prices across tier I cities have reduced by 4 per cent since March end. The National Capital Region (NCR) exhibited a maximum decrease in prices by 9 per cent while Bengaluru, Chennai, Mumbai Metropolitan Region (MMR) and Pune witnessed a drop of 4 per cent each. Interestingly, prices in Hyderabad have increased 6 per cent from a year ago.
“Property prices have started to soften, as 44 per cent projects are offering a discount ranging from 5-20 per cent. 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 Pankaj Kapoor, managing director, Liases Foras Real Estate Rating & Research.
The average price correction includes builders’ quoted prices, cash discounts, online booking discounts, stamp duty and the goods & services tax waiver, various incentives etc. Over 6,046 projects out of 8,860 projects checked from total 13,428 projects offered such discounts across these markets.
In MMR, sales declined 63 per cent led by 85 per cent and 73 per cent drop in Navi Mumbai and Panvel market, respectively. Unsold Stock increased by 5 per cent each in central suburbs and extended western suburbs followed by 3 per cent in Navi Mumbai and 2 per cent in extended central suburb Extended.
The worst-affected NCR market, sales witnessed a significant drop in all suburbs bearing an overall drop of 67 per cent. Sales declined maximum in Faridabad 85 per cent followed by Gurugram 76 per cent, Bhiwadi 65 per cent, Greater Noida 63 per cent, Ghaziabad 60 per cent and Noida 45 per cent, the data showed.