Property Rates in India to go up by 10% in Next Six-Months

March 15, 2007	(1 votes, average: 4 out of 5)  Loading ...
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The future of Indian retail industry seems bright in the coming six months as implied by the data showcased by Federation of Indian Chambers of Commerce and Industry (Ficci) in its survey on property prices.

The real estate rates in India will go up by 10-15 percent over the next 4-6 months.

According to the survey report, the correction in Indian property rates is likely to be short-lived and will be restricted to cities where supply is more than demand. The report attributed the price rise to strong economic growth and said it will resume over the next four to six months.

Ficci, for this survey had collected samples from 24 major real estate consultancy firms, developers, construction companies, builders and financing institutions. Following firms took part in the survey: SBI, Unitech, GE Real Estate, Mayfair Constructions, Ernst and Young, JM Morgan Stanley and many others.

As many as 67 percent of the respondents felt that foreign direct investment (FDI) will assist in raising the property rates in India while 90 percent felt that initial public offers (IPOs) will help in making the Indian real estate Industry more organised.

The report has definitely come has huge relief for real estate developers in Bangalore, Mohali and Ludhiana where price rates recently had a freefall—dropping 15-20 percent.

But, despite all the fluctuation in Indian retail market, property rates in Gurgaon have been stable for the last six months.

Santosh Kumar, COO, Trammell Crow Meghraj, a real estate consultancy firm that participated in the survey, said due to high home loan rates and volatility in stock market have making customers think twice about buying homes. And, that there has been no great demand in Gurgaon in the last six-months or so.

News Published Under:   Real Estate India |

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