A study re­veals Property prices may in­crease af­ter elec­tion re­sults

Accommodation Times - - .. Nation.. -

Property prices are likely to in­crease six months af­ter the coun­try gets a new govern­ment, a sur­vey said.

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.

The sur­vey cov­ered Ahmed­abad, Kolkata, Mum­bai, Delhi, Hy­der­abad, Pune, Noida, Gur­gaon, Ban­ga­lore and Chen­nai.

“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,” said Sud­hir Pai, busi­ness head, Mag­icbricks.com.

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 info tech 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 that 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,” said Uma Si­tara­man of IIMB-Century Real Es­tate Re­search Ini­tia­tive. “Clar­ity will set in, based on elec­tion re­sults and well af­ter the new govern­ment takes charge,” Si­tara­man said.

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