Property prices in most Indian cities are set to see a sharp increase
over the next six months, according to the housing sentiment index,
jointly prepared by the Indian Institute of Management and real estate
consultant Magicbricks.
The aggregate Housing Sentiment Index (HSI) has bounced back to 117 from 93 in the previous quarter, reflecting a shift when buyers expected real estate prices to decrease.
“Indian real estate is bound to remain an attractive sector in the medium term with faster growth expected in Tier II cities. However, active interest will take another 6-9 months to translate into buying activity as consumers expect prices to go up only after six months, post the 2014 elections,” said Sudhir Pai, business head, Magicbricks.
Noida topped the list of cities with an HSI of 129 and witnessed a 33 percent jump quarter-on-quarter. The proposed metro link, emphasis on affordable housing projects and construction of software technology parks is making Noida a fast growing and attractive city to live in.
Despite the Telangana issue, Hyderabad has smartly rebounded to an HSI of 101, a 22 percent increase this quarter, breaking a largely negative streak to end close to neutral.
Mumbai and Delhi are the only two cities with HSI lower than 100. While Delhi scored 96, the financial capital, Mumbai wrestles a state of high supply with negligent demand, posted the lowest HSI score of 85 this quarter.
“Although sentiment this quarter has increased, buyers continue to be
cautious with average waiting time increasing to over nine months.
Bangalore continues to be steadily upbeat over the last three quarters
and is the first choice for those relocating from other cities,” states
Prof. Venkatesh Panchapagesan, Head of IIMB-CRERI, IIM Bangalore.
Properties in the Rs 20-40 lakh range is most preferred and 60 percent of buyers plan to finance their purchase with a bank loan while 18 percent plan to sell existing assets.
http://in.finance.yahoo.com/news/property-prices-set-to-soar–except-in-mumbai–delhi-061014248.html
The aggregate Housing Sentiment Index (HSI) has bounced back to 117 from 93 in the previous quarter, reflecting a shift when buyers expected real estate prices to decrease.
“Indian real estate is bound to remain an attractive sector in the medium term with faster growth expected in Tier II cities. However, active interest will take another 6-9 months to translate into buying activity as consumers expect prices to go up only after six months, post the 2014 elections,” said Sudhir Pai, business head, Magicbricks.
Noida topped the list of cities with an HSI of 129 and witnessed a 33 percent jump quarter-on-quarter. The proposed metro link, emphasis on affordable housing projects and construction of software technology parks is making Noida a fast growing and attractive city to live in.
Despite the Telangana issue, Hyderabad has smartly rebounded to an HSI of 101, a 22 percent increase this quarter, breaking a largely negative streak to end close to neutral.
Mumbai and Delhi are the only two cities with HSI lower than 100. While Delhi scored 96, the financial capital, Mumbai wrestles a state of high supply with negligent demand, posted the lowest HSI score of 85 this quarter.
Buyers are surveyed across 10
major cities in India. Apart from Mumbai, Delhi, Hyderabad, Pune, Noida,
Gurgaon, Bangalore and Chennai, Ahmedabad and Kolkata were the two new
additions to the survey this quarter.
Properties in the Rs 20-40 lakh range is most preferred and 60 percent of buyers plan to finance their purchase with a bank loan while 18 percent plan to sell existing assets.
Considering high construction
costs, steady inflation, increasing bank loan rates and the looming
elections, buyers are likely to be extremely cautious before investing
in real estate in the coming months.
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