Market Outlook for Residential Real Estate
Knight Frank India, a prominent real estate consultancy, has projected potential corrections in house prices if the current residential property sales slowdown persists.
Key Observations by Pranay Vakil
Chairman Pranay Vakil highlighted several critical market dynamics:
- Residential segment experiencing significant slowdown
- Low transaction volumes indicating potential price reductions
- Speculative areas already witnessing price declines
- High probability of price corrections if current trends continue for 2-3 months
Market Indicators
Sales Volume Trends
- Traditional seasonal drop typically observed in June
- Brigade Enterprises reported a 20% decline in house unit demand in South India during January-March
Price Corrections
Media reports suggest price corrections in major metropolitan regions:
- Mumbai: 15-20% price correction
- Bangalore: 15-20% price correction
- Pune: 15-20% price correction
- National Capital Region: 15-20% price correction
Commercial Real Estate Perspective
Vakil also noted that commercial office space rental markets are likely to maintain high rates for the next 6-12 months due to persistent demand-supply mismatches.
The ongoing market conditions reflect challenges in residential real estate, driven by factors such as high interest rates, oversupply, and funding complexities.