35% Correction + RESIDEX

As said earlier, here is the second part of the coverage on the impending correction of Indian Real Estate prices.
Edelweiss Report further adds,

Property prices in India increased sharply over the past 6-7 years -rising 3.4x in nominal terms 320 and 2.5x in real terms over 2001 price. We expect a price correction of 48% in nominal terms and 58% in real terms from the peak.

We believe, nominal prices have corrected by ~19% since then. However real prices have corrected by ~24%. We expect prices to correct another ~30% in the nominal terms in the next 3 years.

The factors that will contribute to subdued Real Estate Market is - Slow GDP Growth and deteriorating employment market. Adding to short sighted Realtors woes is the successive downgrades of their ratings and increase in outstanding.

What Should Prospective Buyers do ?
We recommend that you go and straight away sit across the table of projects completed or nearing completion and based on this Analysis ask for further 25% discount. For instance, if you are planning to BUY in Brigade Gateway Bangalore, they are quoting somewhere around Rs 3,900 / sft. Straight away ask them for Rs 4,000 / sft or Less which should also include Car Parking + Registration. [This Project is still under mid stage of construction]