Property Prices to Fall 20% - Pujit Aggarwal

Property Prices which had touched the roof will fall inevitably by 15-20% very soon. This is backed by Orbit Corporation [Mumbai's Leading Developer] MD, Mr. Pujit Aggarwal. He said,

It should come down in the festive season itself; people those who are ready to reduce it in the festive season itself it is where it will sell. If they don’t reduce the prices during that period, then it will not sell. There should be a correction of at least 15-20% from the top.

Many Large Developers are facing extreme liquidity problems and may run into loss on a QoQ basis if they don't sell by lowering the prices.

For instance, Parsvnath Developers promoters [Mr. Jain Family] pledged their own shares to raise immediate funding for a project, so tight is the liquidity situation. But due to the recent meltdown in Realty stocks, the lender invoked further co-lateral due to erosion in the stock value of Parsvnath. Had Mr. Jain defaulted, the pledged shares would end up in the market sending the stock prices further lower. To preserve the stock price, Parsvnath has to earn on a QoQ basis and this can happen only when they lower the price of the property and start resuming the stagnated sales.