Stagnant Prices and Interest Rate-driven Affordability
A combination of stagnant property prices over the past two years and recent reduction in interest rates defines a phase called Economic Harmony. This single factor has led to a 15 per cent year-on-year (YoY) jump in home sales across the top eight cities in the country to 78.2 million sq ft in the quarter-ended September 2016-17. The weighted average price across the eight Tier-I cities remained stable over the quarter. However, weighted average price rose 3 per cent over the past one year.
Read on for the last part of the series on ‘The Prospects Ahead’.
About the author:
Pankaj Kapoor, Founder and Managing Director, Liases Foras, is a well-known name in the real-estate industry with over 15 years of experience, particularly in the fields of valuation, risk assessment and forecast of price behaviour.