Property prices dip in Bangalore, 7 other cities
No takers
Property prices in eight major cities of the country, including Bangalore, have slumped up to 15 per cent in the first three months of 2011, according to the latest data of the National Housing Bank.
The reason is attributed to slowdown in property demand for houses owing to high property prices and rising interest rates.
According to the National Housing Bank (NHB), during January-March 2011, housing prices have declined in eight major cities by up to 15 per cent. “But prices in six cities, including Delhi, have gone up marginally,” R V Verma, NHB Chairman and Managing Director, said.
The prices of residential properties have fallen maximum in Kochi by 14.92 per cent in January-March compared to the previous quarter. Bangalore with 12.87 per cent stood second, followed by Faridabad (6.37 per cent), Hyderabad (4.6 per cent), Surat (3.76) per cent, Bhopal (3.55 per cent) and Jaipur at 2.63 per cent. Kolkata has shown a marginal decline.
Notably, RBI had raised the repo and reverse repo rate for 10 times since March 2010 to control inflation. However, the prices have increased in six cities, including Delhi. In Pune, prices of residential properties went up by 5.02 per cent, followed by Lucknow (3.09 per cent) and Delhi (2.64 per cent). Marginal price rise was seen in Ahmedabad, Chennai and Mumbai.
Speaking about the plans of NHB for 2011-12, Verma said the bank, which is owned by the Reserve Bank of India would raise Rs 11,000 crore during the fiscal to fund housing activities compared to Rs 9,000 crore in 2010-11.
New trend
*Decline in property demand
*Prices in eight major cities dip by up to 15 per cent.
*Prices of residential properties have fallen maximum in Kochi, second in Bangalore
*Prices in Delhi goes up
*Marginal price rise in Ahmedabad, Chennai and Mumbai.
