Nagpur: A Global property guide shows that India’s property market continues to show a downward trend, mainly due to high interest rates on home loans and slower economic growth.
The survey covered 26 Indian cities and last results posted were for August 2014.
Out of the 26 cities covered by the National Housing Bank, if adjusted for inflation, house prices actually fell in 21 cities, including the nation’s capital Delhi.
Only five cities experienced price increase.
The highest growth was in Surat with 17.86^ followed by Chennai with 12.58%.
Surprisingly Nagpur was the third with an increase of 10.43% – actual growth 3.3% after adjusting for inflation.
What is the cause of this, specially when according to official Nagpur Municipal Corporation figures population growth in Nagpur city has shown a declining growth over decades.
From 1921 – 1931 to 1991 – 2001 growth rates fell from 48.3% to 32.6%. Extrapolated into the future, it is estimated that by 2021 – 31 growth rate may fall to 22.2% unless development activities take place.
Whatever population growth is taking place in the city is mainly due to immigration from other states like Chattisgarh and Madhya Pradesh – typical migrant being uneducated labour class.
On the other hand, educated youth of Nagpur are migrating OUT for jobs and education.
Almost 40% of Nagpur population lives in slums.
Then what accounts for housing prices going up in Nagpur?
Nagpur Today is going to come up with a series of in depth articles probing this confusing and contradictory situation. We will probe all angles – from the customer’s point of view to the Builders and also official statements on the housing scene.
Watch out for our expose!
… Sunita Mudliyar -if you want to share your views you can mail to firstname.lastname@example.org or call the writer on 2244200