The value of a home in India has been falling rapidly over the past decade, with the country’s real estate market currently at a record low of $6,822 per sq ft, according to the National Sample Survey Organisation.
This is according to a report by the Mumbai-based think tank Demographia.
The study found that the average value of homes in India fell from $8,800 per sqft in 2011 to $6.5 million in 2016, an increase of more than 25 per cent.
Demographie said the decline was mostly due to rising prices.
However, a recent report by brokerage CLSA India said India’s real property market has become more attractive in recent years, with a large number of buyers willing to pay a premium for homes in urban areas.
This is in part because of the low-cost housing market in the country, CLSA said, adding that the market has improved as a result of new policies.
While prices have fallen in recent decades, Demographies report showed that they are still lower than the prices of US states like Florida and Florida, with some states, like Texas, where prices have more than doubled, being more affordable than in states such as New York and California.
The market in cities has also seen more buyers move to them, the report said.
This suggests that the urban housing market has not reached the level where it can sustain a high price for housing, Demographs report said, while the real estate industry is not yet ready to invest in new urban housing projects.
Read more: Demographias study said India is still far from achieving a ‘normal’ level of urban housing supply.
The report also pointed to the increasing number of urban households, with urban population growth slowing in the past five years.
This has resulted in urban housing demand going up in the form of new housing.