The housing market has had a rough ride, and the latest round of defaults on property is a reminder of just how volatile it can be.
The latest default on property in Delhi is a stark reminder of how much more volatile the market is, and how fragile the supply and demand on housing can be, according to the Centre for Policy Research (CPR).
In a recent report, CPR said that the total number of defaults in the property market is at its highest in nearly a decade.
The total number for April 2018 is a record, at 10,06,000.
That’s a 5.7% increase over the previous month.
The total number has increased by 2,500, or 6.3% in the same period.
This is the highest number of defaulted property in over a decade, and a huge jump from a year ago.
The CPR also found that the number of property defaults has increased in the capital, with a total of 12,788.
In fact, the total amount of property properties issued in Delhi has increased five times since the peak in March 2017.
There have been 2,924 new properties issued this year, compared to 4,838 issued in March this year.CPR’s data showed that there has been a significant jump in defaults in Delhi, which has doubled since March 2017 to 2,891.
This means that the rate of defaults has gone up from a low of 1.7 per cent in March to 2.2 per cent this year as well.
In Delhi, the number has doubled to 3,966 properties.
This shows that the government’s efforts to keep property prices stable have failed.
The CPR’s report, entitled “How much is too much?”, states that the average price of a property in the Capital has increased from Rs 8.25 lakh in March 2016 to Rs 10.75 lakh in April 2018.
It says that the cost of the properties is rising faster than inflation.
The number of properties in default is at the highest in over two decades, CPA’s report found.
This is the fifth consecutive year that defaults have been recorded at this level, the highest on record.
The report said that in the past six years, the percentage of defaults, which is a measure of the number and size of properties that are in default, has increased.CPA also found out that the Government’s policies have not kept up with the needs of the people.
“The increase in defaults is a sign of the Government being unable to meet the challenges facing the Capital, and of the lack of effective communication between the government and the people,” it said.
CPR said that a lot of the issues in the housing market are being driven by high demand and low supply.
The demand is high because the number-one need for housing is not finding housing at reasonable prices, but also because many families are in poverty.
The Government’s policy is aimed at keeping the market affordable, but the market, and therefore the population, is suffering from the impact of this policy.
“As of now, the demand for housing in Delhi stands at around 7,500-8,000 properties per day, and has been rising for more than a decade,” CPA said.
“It’s clear that the real estate market in Delhi cannot meet the expectations of the residents and is in a state of crisis.”