Property prices are likely to increase only
after six months when the country will get a new government, a recent
survey said here today. The Housing Sentiment Index (HSI) assessed by
IIM Bangalore and Magicbricks.com forecasts that home buyers across
eight of 10 cities surveyed expect real estate prices to rise over the
next six months. Cities like Ahmedabad, Kolkata, Mumbai, Delhi,
Hyderabad, Pune, Noida, Gurgaon, Bangalore and Chennai were surveyed.
"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 six to nine months, since
consumers expect prices to go up only after six months, post the 2014
elections," Magicbricks.com Business Head Sudhir Pai said in a
statement. 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 and 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," he said. Bangalore
topped the list of cities with an HSI of 140, witnessing a further 15
per cent 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.
Hyderabad, with an HSI of 97, witnessed a four per cent drop this quarter, after the Telangana issue weighed down sentiments in this city, it said. "While the average waiting time has dropped to a little over eight months this quarter, the range-bound increase witnessed across cities and sectors indicate that people are awaiting election results to make real estate decisions. "Clarity will set in, based on election results and well after the new government takes charge," IIMB-Century Real Estate Research Initiative Lead Researcher Uma Sitaraman said.
Hyderabad, with an HSI of 97, witnessed a four per cent drop this quarter, after the Telangana issue weighed down sentiments in this city, it said. "While the average waiting time has dropped to a little over eight months this quarter, the range-bound increase witnessed across cities and sectors indicate that people are awaiting election results to make real estate decisions. "Clarity will set in, based on election results and well after the new government takes charge," IIMB-Century Real Estate Research Initiative Lead Researcher Uma Sitaraman said.
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