10-15 pct Hike Expected in Property Prices in 6-9 months

News Posted - 2010-05-11

Realty prices may go up by anything between 10 to 15 per cent in the next six to nine months, with demand exceeding supply, real estate developers said today. “The price is going forward. It is likely to increase by 10-15 per cent in the next six to nine months’ time,” Parsvnath Developers Chairman Pradeep Jain told reporters on the sidelines of a conference organised by Credai’s NCR chapter.

BPTP Chief Financial Officer Sunil Jindal also feels that housing prices in the National Capital Region are likely to increase by 8-10 per cent in the same period on the back of rising demand. Both feel that the anticipated price rise would not have any impact on demand for housing units, since the gap between supply and demand is huge and the overall sentiment for the sector has improved since the downturn.

“Demand is huge. Now things have improved, funding has improved, purchasing power has improved. Hence, I don’t see any impact even if prices escalate further,” Jain said. Real estate prices have gone up by 10-15 per cent in the last few months on increased demand.

“NCR is short of five lakh housing units and there is an incremental demand of at least one lakh units a year. For the past few years, total supply in the region could not even meet the year-on-year incremental demand,” Jindal said, justifying the rationale for prices going up.

Source: Indianrealtynews 8/5/10