News & Views on Indian Real Estate

Friday, September 12, 2008

Jaipur Witnesses Correction In Prices

Capital cities are witnessing a price correction due to low liquidity of real estate and high mobility of investor capital. Particularly, the property market of Jaipur has seen a fall of 20% in property prices. "The realty market in Jaipur has hit rock bottom as property prices have come down by 20% in the past one year. We were hoping the festive season would bail us out," says Mr. Atmaram Gupta, a builder. Experts also think that the situation is not going to change unless a big corporate investment comes to the market's rescue. "The hike in salary after the sixth pay commission will not have much impact in the market due to inflation. For, small investors already reeling under debts and with the rising price of home loan interest it is more difficult for them to think of new ventures," says Mr. Sunil Jain, a member of Township Developer Association of Rajasthan. With each passing day, it's becoming difficult to predict the future, he added.