HDFC, one of the foremost lenders in home loans, has noticed a shift in the trajectory of residential real estate prices, which had previously reached peak levels and are now entering a phase of pre-slowdown adjustment.
Deepak Parekh, HDFC's Chairman, articulated that the economic landscape is showing signs of enhancement. As a result, developers are beginning to levy premiums on properties. The escalating land costs have invariably contributed to the rise in real estate prices.
According to the latest report, residential property prices saw a notable decline of 25% back in October 2009; however, they are now experiencing a significant upswing once again.
Parekh highlighted this shift across some of India's most dynamic markets. Regions such as the suburbs of Mumbai, NOIDA within the NCR, and several areas in Bangalore are all witnessing noticeable price increases.
Beyond these observations, Parekh is advocating for the establishment of a real estate regulatory body to oversee the sector.