Property rates should fall more: Adi Godrej

The country’s real estate prices need to decline further before demand picks up, said Adi Godrej, who heads the Godrej group of companies that has interests in property, consumer goods, and electrical and office equipment.

There has already been a correction in property prices, he told reporters at the World Economic Forum’s India Economic Summit in New Delhi today, without elaborating. The group has real estate projects in Mumbai, Kolkata, Bangalore and Pune, according to its website.

Property prices are dropping across India as a slowing economy erodes demand for homes and office space. House prices in smaller towns such as Agra, Ludhiana and Kochi dropped an average 15-20 per cent, according to Jones Lang LaSalle Meghraj Property Consultants (India).

Rental prices for offices and malls also fell by as much as 20 per cent across India in the quarter, the firm said.