Correction in property prices in offing?

MARCH 23, 2007: Home loan transactions are falling sharply as much as 20%. With rising interest rates affordability has become an issue for homebuyers. Experts have been predicting a correction for long. But the first signs of that happening may now be visible.

“In Mumbai, trans have still not seen a drop in prices but I feel that since the transactions have come dactions have gone down by 10% if we compare it to the previous quarter. As far as prices are concerned weown, to ensure that the transactions go up, there will be certain discounts, if not available now, very soon they will be available.

According to ICICI bank, property prices in smaller cities such as Chandigarh, Jaipur and Bhopal have started correcting already. But big cities like Mumbai are better off.

ICICI Bank recently said it expects home loan market to grow at no less than 25%. It now remains to be seen whether property prices will fall owing to tightening affordability.

 

Source: moneycontrol