In what may come as a relief for home buyers, prices in the residential segment across India has declined by about 1% between January and March, compared to the previous three months.
According to Knight Frank’s global house price index, residential prices reduced by 0.9% between the first quarter of 2012 compared to the fourth quarter of 2011 (Oct-Dec). Prices in India increased by 2.4% in the last six months, according to the report. The prices, however, increased by 12% year-on-year, in the first three months of 2012.
Prices in the residential segment across major cities have failed to correct across the board despite weaker than expected growth in the Indian economy. Many developers have preferred to hold on to the high prices, especially in metros. As a result, sales of major real estate companies have reduced in last 12 months.
The report that tracks residential prices across countries, said India’s price rise was third highest in the world in past 12 months. “Brazil recorded the strongest annual growth (23.5%), followed by Estonia with a growth rate of 13.9%, followed by India with a growth rate of 12% in the last one year,” it said.
According to the report, globally there has been no price rise in the first three months of 2012 due euro zone crisis.