Hyderabad breaks negative streak in real estate: Survey
According to a report by IIM Bangalore (IIM-B) , the housing sentiment index (HSI) of Hyderabad has increased 22 per cent to 101 in the third quarter of the current financial year, in spite of imminent bifurcation of Andhra Pradesh.
This is a sentiment index of the Indian real estate market that focus to capture buyer mood and serve up as an indicator of real estate estate market performance. In October 2013, the first HSI report was released for the July-September quarter.
The value of HSI varies from 0 to 200. If people don’t expect house prices to either increase or decrease, it means neutrality i.e. a score as 100. A score above 100 indicates optimism and a score below 100 denotes pessimism. Whereas ’0′ indicates all respondents expect house prices to decrease and a score of 200 indicates that all respondents expect prices to increase.
The sample size of the online survey was 3,000 buyers. The respondents measure relative market conditions based on common knowledge and from price expectations for the next six months, as stated by surveyors.
Breaking a “largely negative streak”, Hyderabad’s HSI ended close to neutral on account of the Telangana issue, the report stated. It covered 10 cities, across the country including Hyderabad.
Noida topped the list of cities with an HSI of 129 witnessing 33 per cent jump over the previous quarter, as per the report. Conversely, with an HSI of 85, the sentiments were muted in Mumbai. The aggregate HSI had increased from 93 in the previous quarter to 117 in the third quarter for all the 10 cities.
Properties were stated to be preferred with more than 30 per cent of buyers, in the Rs 20-40 lakh range.
As per the report, buyers are probable to use extreme caution before investing in property in the coming years, due to given the high construction costs, steady inflation, increasing bank loan rates and the looming elections.
Source: Business Standard
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