Nationwide survey..!
A nationwide survey conducted by Mint Money and property portal 99acres.com shows that less than half (Nearly 43%) of those planning to buy an apartment think that prices will increase. Nearly half (50.4%) respondent buyers think the same for plots.
Builders are more hopeful and more than half think that prices will rise. The Mint Money - 99acres.com survey was conducted primarily in ten cities namely
Delhi, Mumbai, Chennai, Kolkata, Bangalore, Pune, Hyderabad, Ahmedabad, Jaipur & Nagpur.
3,000 Buyers...!
Incorporated responses of about 3,000 prospective buyers, 200 builders and 500 real estate brokers and consultants. While the survey was done across the age group of 18 to 54 years, the maximum respondents were between 25 and 45 years of age.
Developers and promoters are still facing problems such as limited access to construction finance and high input costs due to continued interest rate hikes till 2nd quarter in this financial year. In addition, they have huge debt on their books. Builders have also witnessed poor sales in the 3rd quarter.
Now, the biggest hurdles are high input cost and high debt.
Mr. Pradeep Jain, Chairman, Parsvnath Developers said, “Because of cost pressures, developers have no choice but to increase the property rates in at least some of their prime projects in prime locations and key cities. The prices have already moved up 15 to 20% in the last 9 to10 months. The company is planning to further increase prices in some of its projects"
While developers are under pressure due to the above factors, they hope that the demand will keep pushing prices.
Shortfall 71.26 million houses..!
According to recent estimates from the ministry of housing and urban poverty alleviation, there is a shortfall of 71.26 million houses. In this 47.43 million & 26.53 million houses in rural & urban areas, respectively.
The survey results indicate a rising price scenario in real estate.
Mr. Shridev Sharma, MD, Kamrup Housing Projects (New Delhi- based real estate firm), “Demand will push the prices upwards. Property market moves in phases of lows and highs. What we saw in the last part of 2011 was a low; what we will see in coming quarters will be the high of the market. Despite the fact there is an inventory hold up with many developers the trend for price hikes is gradually setting in. Banks have already started to bring down their rates. In the next 2 to 3 quarters, there will be a visible change in pricing“
The high demand for the affordable and mid income housing is making people anticipate price rise in this segment as well. About half the respondents thought that the prices of affordable housing will rise, but just 41% thought that in the middle income housing segment.
Respondent builders and brokers too agree on this. Builders see both these segments rising.
Among the brokers, almost 52.2% say that the middle income will rise the most while only 32.7% think that affordable will see the second best increase.
Survey Highlights :
What is your outlook in terms of demand for property in 2012?
Demand For New property
Buyers : 45.70%
Builders: 63.40%
Brokers: 49.60%
Src: Mint
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