Property Prices in NCR May Soar

July 21, 2007	(2 votes, average: 4 out of 5)  Loading ...
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Capital values of land in NCR have undergone a price correction. However, residential property prices will remain under pressure and are likely to soar a little, says a real estate report compiled by Knight Frank, a leading real estate consultancy firm.

Growing urbanization is another emerging factor pushing the demand for accommodation units in suburban localities of urban areas. This is why, there are plans being drawn to develop 530.50 million sq ft. of residential space in the grade A and B+ categories in NCR, Mumbai, Pune, Hyderabad, Bangalore, Chennai, and Kolkata.

These cities house around 26% of Indian urban population and are likely to see a supply of around 200,000 housing units per year in MIG and HIG segments.

The planned supply hardly makes up for the increasing demand for housing in these cities and the residential values may rise. A further price correction can take place in some of these real estate markets to the tune of 15-20% over the medium term.

Factors like the match between demand and supply coupled with the recent increase in home loan interest rates has kept a close check on further hike in property prices, the report adds.

A large supply of property has been earmarked for NCR. Of the total, 80 per cent will come in 2007 and the remaining 20 per cent has been scheduled for 2008.

The maximum supply i.e. 122 million sq ft. will enter the NCR real estate in 2009-10. Around 58 per cent of this overall space has already been booked.

News Published Under:   Real Estate India |

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