Review: Property prices trends across metros

99acres.com

The real estate landscape in year 2013 was marked by a decline in transactions which can be attributed to combination of factors like slackened demand for real estate, high costs of borrowing and rising inventory of projects by real estate developers. The problem was compounded by protracted delay in construction of projects which was adding to the overall costs.

All these factors led to a slowdown in real estate market in the last quarter of 2013. In terms of region, the northern region primarily NCR has witnessed no movement in capital prices with quarter on quarter analysis (Q4-13 over Q3-13) showing a decline of 2% while year on year (Q4-13 over Q4-12) analysis reveals a degrowth of -8%. The quarter on quarter analysis shows that in the Western region comprising of Mumbai and Pune, the capital prices have remained stable with Mumbai showing an increase of 1% while Pune seeing no change in capital prices in Q4-13 over Q3-13. The annual comparison shows Mumbai and Pune showing a double digit growth of 16% and 12% in Q4-13 over Q4-12.

The Southern region which primarily constitutes of Bangalore, Hyderabad and Chennai has seen stability in capital prices with Hyderabad seeing a 1% increase in capital prices while Bangalore and Chennai has seen a decline of 1% and 4% respectively in Q4-13 over Q3-13. Annual comparison shows Bangalore and Hyderabad seeing a 4% and 10% increase in capital prices in Q4-13 over Q4-12. The Eastern region which is primarily Kolkata has seen a decline of 2% in capital prices in Q4-13 over Q3-13 while annual comparison shows an increase of 3% in Q4-13 over Q4-12. In terms of rental, annual comparison shows Delhi and Chennai showing a downward spiral in Q4-13 over Q4-12 with a decline of -7% and -6% respectively. On the other hand Mumbai has seen no change in rents while Bangalore, Pune, Hyderabad and Kolkata have seen an increase of 4%, 4%, 12% and 3% respectively in the same period.

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