the past few years There is an uneven rise in the property market. There has been a continuous increase in the property price and rent. Due to this, common people are facing a lot of problems. The financial burden has increased due to the uneven increase in rent. At the same time, due to the huge increase in the price of property, they are not able to buy. But now the situation is changing. The pace of growth in rent has slowed down.
Real Estate Consultant Anarock According to the report, residential rental growth in the top seven cities Delhi-National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Pune, Hyderabad and Bengaluru has slowed down due to improvement in housing supply.
According to the report, the average residential rent in the major markets of these cities saw an increase of two to four percent in the second quarter (April-June) 2024 as compared to the previous quarter. In the first quarter of 2024, rents in these markets had increased by four to nine percent as compared to the fourth quarter of 2023. This figure is based on the average rent of a 2-BHK flat of 1,000 square feet. Property experts say that there will be pressure on prices in the coming days. The increase in property prices will stop and then a decrease will be seen.
Why will property prices fall?
1. According to the Knight Frank report, the demand for properties worth more than Rs 1 crore has increased from 29% to 40% in January-March 2024 as compared to January-March 2023. At the same time, during this period, the sale of properties up to Rs 50 lakh has also fallen from 32% to 27%. Its effect has also been seen on the ticket size of home loans. According to CBRE, the demand for home loans up to Rs 35 lakh has fallen from 53% to 39%. This shows that common people are not able to buy houses. Only premium properties are being sold. Experts say that this is not a sustainable model for real estate. This is sure to lead to a recession which will reduce the price.
Lower middle class is not getting any option
2. According to the report of PropEquity, builders are not building flats up to Rs 60 lakh. To capitalize on the growing demand for premium residential properties, builders are focusing more on offering luxury apartments. Margins are higher in luxury projects. Due to this, the middle class of the country who want to buy a house for their living are not getting the right option. The lower middle class is now unable to buy a house even if they want to. This will also be a reason which will bring recession in the real estate sector.
Unsold inventory increased due to price rise
3. In the last few years, the price of property has increased skyrocketing. Due to the price going out of the budget, a large section is not able to buy a house even if it wants to. This has increased the number of unsold inventory. According to the report of JLL India, due to increased supply of flats in seven major cities of the country, the number of unsold houses in seven major cities has increased by 24 percent compared to 2019. It will take 22 months for the builders to sell these houses. By March 2024, the number of unsold houses was around 4,68,000 which is 24 percent more than December 2019.
Just wait, the price will go down
According to real estate experts, do not rush into buying a house. There is a price bubble in the property market, which is bound to burst. It is not possible to say when it will burst, but the figures indicate that one thing is clear that this bubble will burst. At the same time, if the government decides to link property to Aadhaar, the price will fall drastically. The price is bound to fall due to the attack on benami property.
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