The NHB Residex tracks house prices in 26 cities. During the July-September quarter, 10 of these cities witnessed a decline in prices.
This illustrates the fact that during the quarter, which falls in the festival season, the weakness in rupee and concerns on the overall economy continued to weigh on buyer sentiments. While four cities witnessed no change in the prices over the previous quarter, 12 cities witnessed a marginal pick up.
This follows the weak April-June quarter when the prices in 22 out of the 26 cities tracked by the Residex witnessed a decline in the prices.
For the September quarter, Meerut witnessed the biggest dip of 6.9 per cent, down 8 per cent since March.
Kolkata, Chennai and Hyderabad are among the cities that witnessed a rise in home prices. Prices rose by 5.3 per cent in Kolkata during the quarter, while in Chennai the increase was 5 per cent and Hyderabad at 4.8 per cent.
Mumbai witnessed a marginal rise of 0.5 per cent over the same period.
While Diwali has passed, market experts say that the festival season has been very weak this year and is worst in almost a decade as the overall sales stood at only around 40 per cent of what the market expected. Home buyers have adopted a wait and watch approach as the job scenario in the country remains weak.
“This festive season saw a lukewarm response, despite the usual sales discounts and freebies. Property prices have stabilised and come down by about 10-15 per cent in certain markets of Delhi NCR and Mumbai but buyers continued to prefer a wait-and-watch approach in these inflationary times,” said Anshuman Magazine, chairman & MD, CBRE South Asia.