Real Estate Prices: Will The Trend Continue?

11-10-2024 11:01:00   Osprey Nest Team   

The past year has been challenging for the real estate industry, marked by a significant slowdown in sales and an alarming rise in unsold inventory. While the market previously benefited from appreciating property values, the current landscape is starkly different, with investors and home buyers feeling the pinch. High capital costs, coupled with rising property prices in major metro areas, have strained affordability. Experts predict a deeper correction in the residential segment, with transaction prices already declining by 10% to 15%. Distress sales are becoming increasingly common, and the secondary market is witnessing more discounts as sellers adjust to shifting demand.

Interestingly, despite the current challenges, surveys indicate that a considerable portion of potential buyers in India’s top cities still anticipates a minimum 10% annual increase in property prices in the near future. In contrast, other regions expect more modest fluctuations, ranging from -5% to 5%. This disparity reflects a divided outlook on the market's recovery, highlighting the uncertainty that permeates the real estate sector. With many home loans carrying interest rates of 10% or higher, the landscape remains complex, and stakeholders are left navigating a volatile market filled with both risks and opportunities.