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India real estate rates likely to ease
/ 24 February 2012
MUMBAI — With the Indian real estate market sector expected to remain ‘shaky’ over the next few months, there could be an easing of rates as developers struggle to find buyers, claims a leading analyst.
Sudhir Pai, business head, Magicbricks.com, a portal owned by Times Business Solutions Ltd, told this correspondent on Thursday that there is an overall qualitative shift towards smaller sizes and more affordable housing in Indian cities.
The portal, which organises real estate exhibitions in many parts of the world, is hosting a two-day India Property show 2012 at the India Social and Cultural Centre, Abu Dhabi, on February 24 and 25. About 30 developers from acros India are participating in the show.
“Projects in completion stages will definitely see buyers, despite higher pricing and secondary market purchases,” adds Pai. “While overall Indian real estate tends to be a supply heavy market, these days affordable markets are still active and supply is in shortfall mode. What we predict is that we will see either established players branching into the affordable housing sector as well or a new rung of developers concentrating on this growing segment.”
According to him, buyers seem to be holding on and delaying purchase, which consequently lowers pressure on prices. “A northward revision of prices is being forced by rising raw material and input costs,” adds Pai. “In the last one year, input costs have risen 30-40 per cent and real estate rates have also risen roughly by about 10-20 per cent.”
NRIs though continue to invest in properties in India because of the global scenario and the fact that they want a foothold back home. The volume of NRI traffic on the portal has surged by 40 per cent, he adds. — email@example.com
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