As the global credit crisis ushers in one of the most pronounced slowdowns in the Indian real estate sector recently, both agents and developers express optimism that the upcoming festive season of Diwali, the Hindu festival of lights, may help lift the prevailing gloom. Falling at the end of October, this festival marks a pivotal moment for developers, as many Indians regard it as the inception of the Hindu business year—a time deemed auspicious for initiating new ventures, procuring property, and purchasing high-end consumer goods.
Before this downturn, Indian cities experienced a substantial real estate boom that lasted almost four years, culminating in 2007. However, following a period of stagnation at the year's outset, key metropolitan areas, including New Delhi and Mumbai, as well as burgeoning cities like Bangalore and Pune, have witnessed property prices drop approximately 15% over the last two months.
Moreover, beyond prime locations in these urban centers, there is potential for price corrections of up to 15% across residential, office, and retail sectors as the market adjusts. Realty consultants are cautioning that the property market may remain adversely affected for a duration of at least a year.