Housing sales fell by 17 per cent while new projects declined by 31 per cent in the second half of 2015 due to high price and cautious buyer sentiments, according to property consultant CBRE.
In its latest report 'India Residential, H2 2015', CBRE said residential demand remained sluggish with housing sales dipping by around 17 per cent compared to the first half of 2015.
Hyderabad and Mumbai were the only exceptions that witnessed balanced sales activity.
"The continued decline in demand across the leading cities was largely attributed to unsold inventory and high price points amid cautious buyer sentiments," the report said.
New project launches declined by nearly 31 per cent compared to the first half of 2015 as a result of weak pace of residential sales across India.
Capital values and rents in most markets maintained status quo. In the premium/luxury segment, capital values remained stable barring the housing markets of Bengaluru and Delhi-NCR.
Bengaluru witnessed capital value appreciation across eastern, south eastern and southern markets owing to sustained occupier demand and limited availability of premium stocks in these locations.
Delhi-NCR, however, witnessed a marginal dip in capital values in the range of 2-4 per cent across Vasant Vihar/Anand Niketan, Shanti Niketan/Westend, Chanakyapuri and Greater Noida Expressway.
Capital values across the high-end and mid-end segment also remained largely stable across cities except for Hyderabad and Delhi-NCR.
Commenting on the findings of the report, Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia said, "Despite the muted buyer interest noted in the housing market for much of last year, I feel that 2016 holds the promise of a market revival on the back of government initiatives in the right direction."
"Apart from its renewed focus on large scale urban infrastructure and development of affordable housing, the central bank, for its part, remains accommodative towards further easing of interest rates.
"I believe these moves could help spur property purchase decisions, propelling the market forward," he added.
