India witnessed high volitality in Property Prices in the last 8 years. Breaking this time period (2004 – 2012) in four phases will help in understanding these movements better. Hence we have segregated this period into four phases.
Phase I (2004 to mid 2007): In just three years, property prices along with absorption increased considerably. Though the data for this period is not available, as per our discussion with industry experts, the price rise was very sharp during this period.
Phase II (Mid 2007 to end of 2008): In mid 2007, the absorption started reducing on the back of some sharp up move in property prices. The downward trend continued for 15 - 16 months
Phase III (End of 2008 to end of 2010): Post 2008, the prices started cooling off and resulted in increase in absorption. This continued for almost 2 years (till end of 2010). Till this time, scenario was similar across all major cities in the country. However; post 2010, two of the major real estate markets i.e. Bengaluru and Mumbai started showing opposite trends.
Phase IV (End of 2010 to mid 2012): While the prices continued to rise sharply in Mumbai, Bengaluru witnessed stable pricing levels. This helped Bengaluru to enjoy sustainable absorption against Mumbai, which witnessed considerable reduction in the absorption levels. This continued for almost 13 – 14 months and during this period, Bengaluru witnessed considerably increase in the area launched while Mumbai, coupled with lack of government approvals, witnessed dearth.
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