High costs, sluggish job market hurt home sales
The Japanese financial services major also pointed out that while banks were aggressively pushing to grow their retail book by offering lower rates.
Jul 08, 2016
Source : ET


MUMBAI: Rising affordability concerns and a sluggish job market continued to push home prices downwards, according to a report released by Nomura. At all-India level house price inflation continued to moderate at a fast pace and eased to its lowest recorded level of 5.2% in Q1 2016, as per the Reserve Bank of India's housing price index (HPI). House price inflation was recorded at 9.8% in Q4 2015. 

"Given affordability concerns, we believe risks to house prices remain skewed to the downside," Nomura said in its report. According to Nomura, end-user demand was largely curtailed by elevated home prices and weak job growth that log jammed any possible sales in the real estate sector. In metro cities governments efforts to limit circulation of black money also dulled investor demand. 

The Japanese financial services major also pointed out that while banks were aggressively pushing to grow their retail book by offering lower rates, affordability concerns would ensure real estate demand remains subdued. 

"Even as lower interest rates and an aggressive retail lending push by banks should act as tailwinds, we believe affordability concerns will dominate; this suggests that risks to house prices remain skewed to the downside," Nomura said. 

As per RBI's house price index moderation in real estate prices was fairly broad based. Of the 10 cities tracked by the HPI, four cities experienced an outright yearon-year decline in prices, up from only one in Q4. 

The House Price Index, that measures price levels across the nation also showed that while real estate prices continued to moderate in both metro and non-metro areas, prices in non-metro areas was falling faster. 

Latest Realty News

Jul 04, 2016
The state police has directed police stations across Maharashtra to register complaints against errant builders who cheat flat buyers and violate building norms. Housing experts have welcomed the move--termed by CM Devendra Fadnavis as "a good decision" -but which the real estate industry finds 'disturbing'. In a circular issued last week, special inspector general of police Prabhat Kumar instructed police commissioners in the state to take action according to the provisions of law when people f
Jul 02, 2016
NEW DELHI: A group of home buyers has claimed that the draft rules for the Real Estate (Regulation and Development) Act circulated by the government recently ignores the interest of buyers in ongoing housing projects and should be reconsidered.
Jun 30, 2016
New Delhi: Real estate industry bodies on Wednesday said housing sales are expected to improve following implementation of Seventh Pay Commission recommendations as prices have fallen in last few years because of a slowdown in the property market.
Jun 29, 2016
NEW DELHI: Developers may have to pay 11.2 per cent interest to buyers for delay in handing over apartments and homes, according to draft rules unveiled by the government, a step seen as bringing relief to homebuyers reeling under the impact of delayed projects and mounting loan liabilities.
Jun 27, 2016
If you have bought a property worth Rs 50 lakh or more, according to income tax rules you are liable to deduct a tax at source, or TDS, at the rate of 1 per cent from the payment to the seller.
Jun 24, 2016
NEW DELHI: Reforms in FDI policy and relaxation of norms in Real Estate Investment Trusts (REITs) will benefit the realty sector, especially the commercial segment, property consultant CBRE today said.
Jun 24, 2016
Pune: Not just individuals and commercial organizations, even government agencies default on property tax payment.
Jun 23, 2016
New Delhi: Worli in South Mumbai has become the new luxury residential destination for super-rich and celebrities with the likes of Virat Kohli, Akshay Kumar and business tycoon Ajay Piramal buying properties in this area, a report said.
Jun 23, 2016
MANGALURU: Dakshina Kannada district police has busted an inter-state gang of areca nut, cattle and vehicles thieves and recovered property worth Rs 20 lakh on Wednesday.
Jun 21, 2016
GURGAON: Four people have been booked for taking loan after submitting fake documents of a property. The accused include two women. The accused had sought a loan of Rs 1.55 crores by submitting fake property papers.

Latest Realty News Of State

Realty Talk's