May 27, 2012 4:13:41 am
In the last three months,prices of homes in the diamond city of Surat in Gujarat have crashed by over 25 per cent. The crash has been steepest between January and March 2012,states the latest data from National Housing Bank (NHB),an wholly-owned entity of Reserve Bank of India.
Prices in Surat had been on a steady rise since the beginning of 2010. The cost of owing a home in this coastal town rose by almost 30 per cent in the two years between January 2010 and December 2011. However,according to the latest figures from RESIDEX,a mechanism created by NHB for tracking prices of residential properties in India,the prices in the city have begun to dip.
The biggest drop has been witnessed in the northern areas of the Surat like Katargam,Dabholi and Amroli where home prices have plummeted by 26 per cent (between January and March 2012),compared to the prices that existed in December 2011.
Most of the residential micro-markets in the city,including areas like Rander,Adajan,Udhana,Limbayat,Piplod and Sultanabad,have seen prices dip in the range of 4-12 per cent. Only the eastern areas of the city (Varachha,Umarwada,Puna) saw a 4 per cent rise in prices between January and March 2012.
Similar is the case in Ahmedabad,one of the largest property markets of Gujarat,where home prices rose by 32 per cent in the last two years (ending December 2011) but dipped by as much as 17 per cent in the first three months of 2012. The biggest fall has been in the southern areas of city comprising areas like Vatva Gam,Vishal Nagar,Gordhan Vadi and Abad Diary.
In the eastern part of the city,prices of homes in localities like Gomtipur and Vastral have dipped by 11 per cent,while in the western parts of the city the dip is a nominal 3 per cent.
The only micro-markets breaking the bearish trend were those in the central and northern parts of the city where prices have risen by 20 per cent between January and March 2012.
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