Housing prices declined by up to 12 per cent in the national capital in the first six months of 2013 compared with that in the second half of last year due to lower demand and high prevailing rate, according property consultant CBRE.

“Subdued demand levels led to a correction in both capital and rental values across most micro-markets of Delhi.

Capital values in the premium/luxury as well as in the high-end/mid-end segments witnessed a decline of about 9-12 per cent during the review period,” CBRE said in a report released today on residential markets.

The residential markets across NCR observed subdued activity level in the first half of 2013 as compared to the previous review period, it said.

Real estate developers delayed launch of new inventories and maintained their focus on clearing the existing vacancy levels.

“The NCR’s residential sector has witnessed lower levels of activity primarily due to inflated prices. Going forward this will continue to dampen demand levels, particularly in the premium markets of Delhi and Gurgaon,” CBRE South Asia Pvt Ltd Chairman and Managing Director Anshuman Magazine said.

In terms of leased assets, locations such as South Extension and Greater Kailash I and II witnessed a rental decline of about 12-13 per cent during the review period.

Micro markets such as Panchsheel Park, West-end and Vasant Vihar observed a rental decline of about 9-11 per cent during the first half of 2013.

While the prevalent market sentiment was one of caution, CBRE said that marginal price appreciation witnessed in specific projects in Gurgaon on account of their relative affordability, developer profile and location.

“There was a marginal price appreciation across various micro-markets of Noida, with projects located along the Noida-Greater Noida Expressway witnessing a marginal appreciation of 5-6 per cent, with certain projects located in emerging micro-markets such as Noida Extension witnessing a similar increment during the review period,” the report said.

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