India: Property Prices likely to Increase After Elections..

Property prices are likely to increase only after 6 months when the country will get a new government, a recent survey said.

The Housing Sentiment Index (HSI) assessed by IIM Bangalore & Magicbricks.com forecasts that house buyers across 8 of Ten cities surveyed expect real estate prices to rise over the next 6 months.

Cities such as Ahmedabad, Kolkata, Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore & Chennai were surveyed.

 

Sudhir Pai, Business Head, Magicbricks.com

"Indian real estate is bound to remain attractive in the medium term with faster growth expected in the Tier II cities. Competitively priced urban pockets such as Noida, where robust supply is backed with a promise of better infrastructure, received a thumbs-up from end users.

"However, active interest will take another 6 to 9 months, since consumers expect prices to go up only after 6 months, post the 2014 elections," Magicbricks.com Business Head Mr. Sudhir Pai.

The national HSI remained positive at 108. An HSI score of 100 suggests that prices would remain static.

According to the survey, Mumbai posted a housing sentiment index of 106, turning positive for the first time.

"Healthy demand from Navi Mumbai & Thane resulted in this gain. Infrastructure developments in Navi Mumbai including Trans-Harbour Link and the proposed international airport are turning this location into an attractive investment option," Mr. Sudhir Pai said.

Bangalore topped the list of cities with an HSI of 140, witnessing a further 15% jump in HSI from the previous quarter.

Strong demand from the infotech sector and comparatively affordable prices make this city an attractive option, the survey said.

Share: