Real estate news on Elite property market prices fall in Chennai

Price Trends, Real Estate services, Residential Properties, Chennai
Posted on Dec 09, 2016
Chennai: NRIs have an advantage in luxury property market post-demonetisation as real estate developers in Chennai have 'significantly' dropped property rates, according to Singapore-based business analysts.

City-based developers are cutting prices by up to Rs 20 lakh on slow-moving projects.     

"Experts believe that we can soon expect a 10 per cent-25 per cent discount in the luxury segment of residential condominiums and also in the upmarket areas such as Nungambakkam, RA Puram and MRC Nagar in Chennai," said Abhijit Ghosh, India Desk leader at PricewaterhouseCoopers (PwC) Singapore, an international financial consultancy.

"Specifically, the luxury condominium range of property apartments has been badly hit given that one of the objectives of the current demonetisation move is to discourage all significant cash transactions," said Gaurav Tijoriwalla, manager, PwC Singapore.

The situation is the same in other cities like Mumbai, Delhi and Bengaluru and Chennai.     

Experts have also forecast Delhi property prices to offer 25 per cent to 30 per cent discounts and Bengaluru to offer 30 per cent to 40 per cent discounts.

NRI sources expect luxury property prices to drop by 25 per cent to 30 per cent.

Property transactions have plunged significantly in the last month post-announcement of the demonetisation programme on 8 November.

Bengaluru  property registrations have dropped to about 200 per day, compared to approximately 1,800 properties before demonetisation took effect, the experts said.     

Mumbai is expected to see a 50 per cent to 70 per cent slow down or may even go to a no-transaction period.

India's property enquiry portals, as observed by experts, have seen a significant dip, about 400 people per day asking from an erstwhile number of 1,500-1,700.

But it seems that the overall market sentiment at this juncture is to wait and watch and make the right move at the right time, they said.     

There is no denying that the NRI community will be taking advantage of the situation and explore to invest in luxury condominium residential apartments in India, Ghosh said.

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