NHB Residex records correction in seven cities

Among the cities that witnessed a correction,the sharpest was recorded by Bangalore at 17.6 per cent,followed by Kochi at 14.92 per cent. Faridabad was next at 6.37 per cent and Hyderabad 4.6 per cent. Surat,Bhopal and Jaipur had price corrections of 3.76 per cent,3.55 per cent and 2.63 per cent respectively.

Ahmedabad,Chennai and Mumbai saw marginal increase; Kolkata,a marginal decrease; while prices in Patna remained unchanged over the previous quarter.

The latest quarterly figures were released Friday with NHBs Report on Trend and Progress of Housing in India for the year 2010.

RV Verma,CMD,NHB,attributed the fall in prices to a slowdown in housing demand as a result of high property prices and rising interest rates.

He also said that age and earning profile could also possibly be one of the factors for fall in prices,particularly in cities such as Bangalore where there is more demand from the younger generation who could postpone their decision to buy a house.

Verma though expected prices to come down: We would expect prices to be reduced. In an oversupplied market,there is a scope for prices to come down. He added that developers should allow the market to function efficiently,looking at the demand-supply situation.