Press Trust of India / Mumbai Mar 24, 2009, 20:49 IST
With investors shying away from real estate sector, Property Investment Advisors ASK expects there could be an up to 30 per cent price correction across most realty markets in the country.
"We believe that there is scope for another 25-30 per cent correction in prices in most (property) markets of the country," ASK Property Investment Advisors said in a report based on a review of the sector.
Stating that demand was overwhelmingly gravitating towards "affordable housing", ASK said that end-users and investors were shying away from real estate resulting in a demand-supply mismatch with the creation of substantial inventory of premium/affordable properties.
Demand would be increasingly price and product sensitive with completed properties commanding a 15-30 per cent premium over under construction properties due to a perceived increase in project execution task, it said.
"The top seven cities continue to have considerable latent demand for housing and at the right price, buyers are rushing to the market," it said, adding demand in the seven top cities had been impacted more than tier-III and emerging cities.
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