Property prices to decline in some areas: Macquarie Report

A study by Macquarie Research says that residential prices are expected to decline by 5-15 per cent in Gurgaon, Noida, Pune and Bangalore as the supply outstrips the demand.

As of now, prices in Gurgaon, Noida, Pune and Bangalore are in the range of Rs.3,500 and Rs7,500 per sq. ft.

In South Mumbai, due to the limited scope for new supply, the prices are likely to remain stable or increase by about 5 per cent.

Parts of suburbs in Mumbai and Delhi could see a price correction of up to 10 per cent.

In cities such as Hyderabad, Chennai and Kolkata, there will be an increase in property prices to the tune of 5-15 per cent in the residential segment. In Tier II or smaller cities such as Ahmedabad, Chandigarh, Indore, Jaipur, Mangalore, Mysore and Raipur, the realty prices may increase by 5-15 per cent.

According to the Macquarie report, Chennai and Kolkata are attractive options for investment in the realty market while Gurgaon and Pune do not rank high.