Real Estate Maxxed Out in Cities

Surprising though it may seem, real estate rocketed after the recession and overcame fears of a prolonged downturn. A June 2012 study shows that real prices of residential prices peaked in  major cities like Mumbai, Thane, Pune, Hyderabad, Bangalore, Delhi and NCR regions, showing the maximum rate in square feet. There has been a whopping increase in property prices in cities at least and are at an all time high since 2008.  A move to urban areas from rural areas or an increased demand may be responsible as also modifications in strategies by builders in the wake of the recession. In 2009 properties priced between Rs. 2000 to 3000 per square feet stood at 48% of the overall market share. In 2012 the same properties had a share of 28%. 

Properties costing between 4000 to 5000 per square registered a high growth from only 6% in 2009 to 23% in 2012. So builders seem to have learnt lessons and have changed strategies. In 2009 properties priced in the 2000 to 3000 per square feet bracket had an absorption rate of 44% whereas in 2012 properties priced between 3000 to 4000 per square feet had a major share of 30%.  From a negative position in 2009 at below 5% of the norm, properties increased in value to over 3% showing anywhere between 10 to 15 % increase in rates. Does this mean property prices have maxxed out and will show a decline or is this a plateau before a next round of escalation?