No correction in resale property prices post-demonetisation
The much expected landslide price depreciation of 5-20% did not materialise for the lack of transaction volumes in the market and stickiness to price from the seller side.
Even as the overall realty market sceanrio remains weak, there has been no correction in the resale property prices, a report said on Thursday.
"While the overall realty market scenario remains weak, as a direct impact of demonetisation, there is little evidence of any major price correction in the secondary or resale market, as predicted earlier," the real estate quarterly report 'Magicbricks' PropIndex for January-March' said here.
It covers price movement across 750 major localities spread over 14 key cities.
The report for the immediate quarter of demonetisation suggests that despite the cash-ban, the much expected landslide price depreciation of 5-20% did not materialise for the lack of transaction volumes in the market and stickiness to price from the seller side.
"Ready-to-move (RM) properties continue to command a premium over under-construction (UC) properties. Although, the price of RM properties has seen a comparative decline and the difference of price between RM and UC properties now stand at 5.5% as against 9% a year ago," it said.
"At the same time, price of UC properties has seen a marginal increment, net result being closing of gap between price of RM and UC properties," it added.
Magicbricks CEO Sudhir Pai said, "The latest PropIndex reveals that the south Indian cities of Bengaluru, Hyderabad and Chennai have witnessed price gain of 1.5% while prices in the National Capital Region (NCR) fell by 1% during the quarter."
Among NCR cities, Delhi has undergone a maximum price decline across all segments, around 22% which is the highest in the country for three-and-a-half years.
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