India’s property market appears to have hit a slowdown as small and medium sized developers sell off land, even when it means making a loss. The Economic Times reports firms are flogging land and incomplete projects to bigger companies as prices begin to correct.

According to the publication, the stagnant market has led to 15 recent real estate deals falling through in the last two months. Property investors have been clamouring to invest in India for the last five years as the country enjoyed a vast injection of foreign investment, but the growth now appears to be slowing steadily.

Quoted by Bloomberg, vice chairman of Housing Development Finance Corp, Keki Mistry, said:

“Due to the state of the equity markets, many investors who would have bought a second or a third house are abstaining from doing so.

“Genuine home buyers who are looking to buy a house for self occupation will continue to buy.”

Previous figures from Knight Frank have shown houses in some areas in Mumbai and New Delhi have more than doubled in the past two years, according to Bloomberg.

photo credit: Nenyaki

Developer Dubai Properties has entered into a partnership with department store Harrods as it attempts to sell Emirate property investment opportunities.

The group is running an in-store promotion at Harrods’ London branch from July until September, with residential tower units up for grabs. The promotion includes the world launch of Babil, the company’s latest residential development at the Culture Village in Dubai.

Babil includes a limited edition collection of studios, one and two-bedroom apartments available exclusively through Harrods. Yaqoob Al Zarooni of Dubai Properties said:

“This represents a unique opportunity for UK-based investors to purchase residences in Dubai through our collaboration with Harrods Estates.

“In addition to increasing an awareness of the company outside of the UAE and establishing our presence in the UK, the campaign offers UK property investors and home buyers the opportunity to purchase property from our portfolio prior to their release in the UAE markets.”

Dubai Properties is also involved in mixed use master developments including the Jumeirah Beach Residence, Business Bay, The Villa and Culture Village.

Culture Village will cover more than 40 million sq ft when complete and is based in the historic district of Jadaf.

London continues to be one of the few UK areas apparently immune to the house price slump, according to new figures. Estate agency Chesterton says its house price “Poll of Polls” shows the capital’s market is still seeing growth.

London’s property has seen a 6.4 per cent average price growth over the year to June 2008, according to the figures, while overall annual price growth in England and Wales decreased for the tenth successive month.

According to Chesterton, 19 of the country’s 20 most expensive locations are in London, with the exception is Windsor and Maidenhead. Only one of the 19 has seen a price decrease - Southwark, down 1.4 per cent on a year ago, the figures suggest.

The report was compiled by the Centre for Economics and Business Research (CEBR) and also revealed detached houses are holding up best in London, with flats and terraces slightly less popular.

CEBR chief executive Douglas McWilliams said the findings suggested house prices were “drifting downward” rather than freefalling.

Chesterton boss Robert Bartlett said:

“Much like our British summer, glimmers of sunshine can be seen. Annual house prices are still ahead of last year and half of London saw a month-on-month increase in house price.

“This is borne out by the extraordinary performances of a number of our offices. Lettings continue to grow from strength to strength.”