Indian house prices to see a 6% drop this year

Indian house prices are expected to plunge worse than the prediction rendered three months back. This is likely as surging coronavirus infections ravaged demand in an economy trying to fight its historic contraction, a Reuters survey showed.

Even before the virus crisis ravaged the country, house prices had seen almost a 1% decline during the first quarter, data from the Reserve Bank of India showed. Moreover, consumer inflation was seen at 6.67% during the same period.

Demand and activity in the housing market are likely to suffer from the job market’s weak performance, indicating a prolonged road to recovery.

Majority of housing projects are either suspended or left unsold as the country monitored the fastest spread of the virus in the world. More so, this had resulted in a surging unemployment rate, salary reduction in almost every sector, and migration of labor out of top-tier cities.