Residential Property Prices Fall By 7% In Delhi, 15% In Kolkata
The housing regulator said that even as residential property prices skyrocket, Delhi and Kolkata, are bucking the trend, reporting a decline of up to 15 per cent in the first quarter of this calendar year. As per the Residex for the period January-March 2010, a residential property index put together by the National Housing Bank (NHB) for the 15 biggest metros, the residential property rates in these two metros have come down sharply, signaling a correction in the market. While in Delhi property prices have crashed by 7 per cent as compared to July-December 2009, in Kolkata the decline has been sharper at 15 per cent. In Delhi, the prices have dipped by nearly 20 per cent from the peak levels during July-December 2008, a time when the economic slowdown was beginning to spread its tentacles. The index assumes 2007 to be the base year. “In Delhi, the market has seen a huge correction in residential property prices, which was much required. As state land development agency Delhi Development Authority’s (DDA) plans to come up with DDA colonies around farm areas beyond Mehrauli fructify, there is no big pressure on demand. Supply is expected to grow,” said National Housing Bank Executive Director Mr RV Verma.