New Delhi: The price appreciation in the housing segment slowed significantly during 2012 in the top seven cities of the country with average capital value rising by only 1-3 percent, property consultant Jones Lang LaSalle (JLL) India said on Monday.
In its review of the realty sector during the current calendar year, JLL India Chairman and Country Head Anuj Puri said: "2012 was a sluggish year in terms of economic growth, largely because of high interest rates and poor industrial production. Inflation remained high, impacting sentiments and investor interest across businesses, including real estate".
The consultant said a total of 1,60,622 residential units were launched in 2012 in the seven top cities of the country compared with 1,54,701 units for the corresponding period of 2011. These cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore and Pune.
"From the pricing perspective, the average residential capital values in 2012 appreciated in the range of 1-3 percent year-on-year," Puri said.
Among the top seven cities, the capital value growth in Pune and NCR-Delhi was the highest, while Hyderabad and Bangalore saw a slower rate of capital value growth.
"There is still no price correction on the cards, but the quantum of appreciation definitely reduced significantly in all the top seven cities of India in 2012," Puri said.
JLL said although demand showed signs of improvement with the approach of the festive season, developers are still struggling with rising inventories.
The builders have attempted to sell off their existing stock via out-of-the-box marketing techniques and pricing mechanisms to attract end users and investors, it added.