JAIPUR City’s property scene not in pink of health

Five years after a turbocharged growth that saw property prices more than double, realty developers say the slowdown is beginning to trigger a price correction. Rates can come down by 10% in the shortterm and the market will remain stagnant for 12-18 months.      "Today, flats are overpriced by 30%. The end-user demand has dipped. Investors occupy 70% of the market. The slowdown and high interest rates will make it unsustainable for investors to hold on to property for long. A correction of 10% in the short term is likely. Thereafter prices may remain stagnant for 18 months," says Nagen Choudhary, general secretary, Township Developers' Association of Rajasthan. "The rupee's freefall has not translated into any significant rise in NRI demand," Choudhary adds.      "A two-BHK flat in the city which cost Rs 20 lakh in 2010 is now worth Rs 50 lakh," N K Gupta, chairman of Manglam Group, says.      "Even if there is a price correction, it won't be deep. The city's fundamental strengths won't change because of a temporary slowdown," Ajay Modi, a realty firm director, says.