Residential + Apartment Prices to Fall by 10%

Crisil in a report released yesterday has said that Residential real estate: Capital values to fall further by 8-10 per cent in 2009 before stabilising in 2010.

End users also have had to put their purchasing plans on hold due to fall in affordability levels and job-related uncertainties. Average residential capital values declined by 18-20 per cent in March 2009 from the highs witnessed during the first half of 2008.

The following Bar Chart shows the Real Estate absorption between - Real End Users and Investors /Speculators in the Indian Residential / Apartment sector.
It is evident from Graph that Realty speculators are active in Kochi and Chandigarh / Tricity [50% + Consumption]. Pune and Delhi NCR offer the second opportunity [30-35%] for Investors while Bangalore Kolkata and Hyderabad offer the third [20%].

Between now and 2011, Developers will add 700 mn sft of saleable area while absorption is expected to be around 500mn sft. The highest and lowest fall in Realty is as expected as shown in the table below.