Real Estate Market Poised for Significant Price Correction
Post-Monsoon Predictions Indicate a 15-20% Dip in Land Acquisition Costs
The Indian real estate market is on the cusp of a major transformation, with industry experts predicting a substantial price correction in the forthcoming three months. According to leading developers and property consultants, the ongoing monsoon season has led to a temporary stability in property prices. However, once the monsoons subside, land acquisition costs are expected to plummet by 15-20%.
Market Dynamics: Understanding the Monsoon Impact
- Lean Season for Real Estate: The monsoon season is traditionally considered a slow period for the real estate market, characterized by minimal buying and selling activities.
- Post-Monsoon Price Correction: As the monsoons pass, land owners are anticipated to secure better deals, leading to a reduction in land acquisition costs and, subsequently, a price correction in the market.
Industry Insights from Key Players
- Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj:
“Nationally, the real estate market will witness a twenty percent dip in land acquisition costs in the subsequent three months. Till then, the market will continue to be stable. The price corrections will be seen after the completion of the monsoon.”
- Hemant Shah, Chairman, Akruti City:
The real estate rates will continue to be firm for the subsequent three months and will see price correction only after the monsoons.
- Abhishek Lodha, Managing Director, Lodha Group:
The real estate prices will continue to be firm in Mumbai, although markets such as Delhi and Bangalore have started observing a decline in prices.
Addressing Default Concerns
- Response to Reports of Defaulting on Bank Loans:
Vakil attributes the defaults to some real estate developers borrowing bank loans at significantly higher interest rates.