Prices of houses/flats come down in Chennai Metro City!
Posted on: 09/Oct/2020 1:41:24 PM
It has indeed been a surprising contrast that though there has been a downward trend in the prices of houses during the last 3 months in 6 major cities including Chennai Metro City, the sales of houses have gone up by an extent of 3.5%!
During the last July-September period, due to the raging coronavirus pandemic and the resultant prevention of spread by way of lockdown imposition, the average price of houses have gone down by the extent of 2% to 7% in 6 major cities in the country. Out of this, the maximum reduction in house prices has been observed in the Chennai Metro City at 7%!
In a survey/analysis undertaken by Knight Frank India Private Limited, it is established that as the demand for the new house buyers came down in the last quarter of the year, the house prices have come down in the subsequent quarter.
However, as for the cities of Bengaluru and Hyderabad, in the period July-September (2020), there has been an increase in the house prices by the extent of 3% and 4% respectively as compared to the previous year!
The highest extent of reduction in house prices in the country, 7% on the average, has been recorded in the Chennai Metro City. As compared to this, the reduction in house price is 5% in the areas of Delhi-NCR and Pune.
In Kolkata and Ahmadabad, the reduction has been 3% and in Mumbai, it is 2%.
Out of the 8 major cities in India, the house prices have come down in 6 cities!
In a report by Knight Frank India in this regard, it is mentioned that an increase in house prices has been recorded only in 2 major cities � Hyderabad and Bengaluru.
In this respect, 3493 more houses have been bought in the quarter July-September throughout the country. This is 3.5 times more than the 1st Quarter sales in 2020 of the buying of 9632 houses.
Though prices of houses have come down, the 2nd quarter has seen an increase in the number of houses sold.
In this scenario, the report further mentioned that there are 2 reasons for this - construction companies strive to sell the unsold houses and the consumers who availed the timely opportunity to buy houses.
Another reason for this trend is that the State Government of Maharashtra has reduced the registration charges while buying new houses in Mumbai and Pune.
The approaching festive season is a rather essential period for the construction companies. The main reason for the increase in houses sales increase in this quarter as compared to April-June is the lots of concessions announced by the construction companies and also the easier terms of payment offered.
The reduction in the interest rate offered by the banks for housing loans also provided an opportunity for a large number of citizens to buy new houses!
Though it may take some more time for the construction industry to return to normal operations, the indications are definitely seen that it will grow and develop further in the next quarter!
