MUMBAI: Amidst stubborn prices in most of the real estate markets, HDFCBSE -2.35 % chairman Deepak Parekh today said the residential price escalation now seems to be a thing of the past.
"My view is that real estate prices should come down, at least on the residential side. The days of prices shooting up have gone," Parekh told shareholders during the company's annual general meeting here this evening.
He also said the commercial real estate segment has collapsed and the prices of commercial properties are unlikely to rise.
"If you look at the general property scenario, commercial real estate has collapsed across the country," he said, adding the IT, retail and office space are in surplus.
The chairman of the largest pure-play mortage lender further said it is only residential component where prices have not yet fallen.
"In smaller cities they (residential prices) have gone up but they are reasonably priced in Tier II and Tier III cities," he said, adding his company's growth is coming from small towns now.