New Delhi: Housing prices have declined by an average 8 per cent in Delhi-NCR during 2013 compared with the year-ago period due to slowdown in property market amid economic and political uncertainties, a study said.
"Delhi-NCR is one of the most sought after property destinations in India. However, the present economic and political uncertainty is getting reflected in capital prices in the region," property portal 99acres.com said in a report that covers trends on property prices for the housing segment.
The quarter on quarter comparison shows a decline of 2 per cent in Q4-13 as compared to Q3-13 of this year. "Annual comparison (Q4-13 with Q4-12) however shows a decline of 8 per cent in 2013," the portal said in a statement.
The average rentals for a 3BHK flats have dipped by 6 per cent during the fourth quarter of 2013 against the previous quarter. Rentals have fallen by 7 per cent during 2013.
Commenting on the report, 99acres.com Business Head Vineet Singh said: "Delhi-NCR region is witnessing a decline in transactions which is underlined by a combination of factors like slackened demand for real estate, high costs of borrowing and rising inventory of projects by real estate developers."
However, he added that certain pockets in the region have shown a spike in prices like Noida extension, Yamuna Express way and Bhiwadi area near Gurgaon due to the presence of affordable range of new projects.
Removal of toll and launch of schemes by developers like construction linked schemes would shore up the prospects of real estate in the region.
"Also, the upcoming general elections in April will also ameliorate the situation with lots of policy issues likely to move out of limbo," Singh said.
In the western region, the capital prices have remained stable in Mumbai showing a rise of 1 per cent during Q4-13 over Q3-13, while Pune saw no change in capital prices.
"The annual comparison shows Mumbai and Pune showing a double digit growth of 16 per cent and 12 per cent in Q4-13 over Q4-12," the statement said.
