Despite Sluggish Market, Realty Prices Across Major Cities Witness Appreciation

BANGALORE: In the hazy roller coaster ride for all the existing and emerging things in the business world, the real estate is on fluctuation too. The various set bars for the prices of the property, many cities are witnessing ups and downs. Though there has been a declining trend in the sales market, the real estate prices are rising high. According to National Housing Bank data, 12 Indian cities are observing the rise in the properties price since April 2011.

Delhi along with Mumbai has the property price appreciation of 33.3 percent and 22.65 percent respectively, according to the data available since two and a half years. Jaipur becomes the topper with 64 percent rise of the property price. Among the 15 cities covered by the NHB Residex, three cities namely Kochi, Bhopal and Faridabad have falling rate of property price rise.  The least recorded was Kolkata with only 1.3 percent.

Industry experts said that appreciation would have been higher if the economy was not hit by a slowdown. They added that many factors such as, cost of construction, inflation, and land costs contribute to the rise and fall of the property prices. With a healthy growth in the market, the slowdown rarely intervenes in the rise of the property prices. The returns are fruitful. 50 to 150 percent rise in the prices has been seen since 2008-09.

NHB Chairman, RV Verma said, apart from Delhi-NCR and Mumbai, the market is working quiet efficiently. The growth is well credited to the fact that people are expecting a rise in the prices of the real estates and the interest rates as well. The rising demand to acquire a property well in time is also raising the prices. The tier I and tier II cities are boasting of housing loans going up and thus giving an opportunity for the people to buy new properties.

The reasons behind the high prices of the property in Delhi-NCR and Mumbai are mainly because of the hard fact that investors hold on to the properties and thus gradually increasing the price for it; and the customers are not able to but it smoothly. Though with the price rise in India is still average with 22-23 percent, the past year; it has seen healthy appreciation in prices and decline in speculative investments. This is the sign of growing maturity.

Read More: Biggest Mistakes First Time Home Buyers Make

Connaught Place Ranked 8th Costliest Office Site In World