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Demonetisation: Housing Prices To Drop 30 Per Cent, Real Estate To Lose Rs 8 Trillion In Value
An under construction apartment (PRAKASH SINGH/AFP/Getty Images)
According to a new report, housing prices in India can crash as much as 30 per cent in the next six to 12 months following demonetisation. The drop in prices, in turn, will potentially wipe out Rs 8 trillion worth market value of residential properties sold and unsold by developers since 2008.
“In the aftermath of demonetisation impact on Indian real estate sector, market value of residential property of Rs 802,874 crore is expected to be wiped off in the next 6 to 12 months,” PropEquity, the real estate research and intelligence firm that prepared the report, said.
“According to PropEquity research, residential real estate valuation in the top 42 cities in India, sold and unsold, will take a tumble and fall up to 30 per cent from Rs 39,55,044 crore by approx Rs 8,02,874 crore to Rs 31,52,170 crore,” it added.
The figure represents the value of 49,42,637 built-up ready, under construction and currently launched properties, available in 42 Indian cities since 2008. At Rs 200, 330 crore, Mumbai will suffer the maximum fall in total market valuation, followed by Bangalore at Rs 99,983 crore and Gurgaon at Rs 79,059.
“Indian realty is now bracing for sub-prime level crisis, which is expected to deeply impact the core of unorganised real estate and black money,” the firm says in its report.
Read more in this report on Mint.
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