Residential Property Price Forecast
Residential property prices are projected to decrease by approximately 10% throughout this year. In March, residential property rates experienced a significant decline, ranging from 18% to 20%. Despite these falling prices, potential homebuyers are adopting a cautious "wait and watch" approach, carefully observing market developments. This trend of hesitant buyers cautiously evaluating market fluctuations will likely persist throughout 2009.
Commercial and Retail Segment Outlook
Mr. Sudhir Nair, Head of CRISIL Research, offered his assessment of the current situation: “Demand in the commercial and retail segment is likely to remain under stress for the next two years owing to excess supply and weak off take.”
Impact of Home Loan Interest Rates
There is a prevailing belief that reduced home loan interest rates will create a more conducive environment for increased demand within the residential property segment. Therefore, property values are expected to settle down during the first half of 2010, gaining firmness, and rise as buyer interest returns during the second half of the year. As a result, both industry professionals and prospective buyers are keeping a close eye on the home loan interest rates and CRISIL research data.