Luxury house prices rising
The first edition of Index report of the known property portal’ for the period (Apr-Jun 2014) has been reported a largely stable matrix of the demand and supply that is reflecting the little change in the index values. However while the Delhi city index has dropped by 4 percent, the highest in the quarter predictably the National index has remained stable by around 1 percent.
The highlight of this report is thought that the drop in demand for affordable properties (budget range of Rs up to Rs 20 lakh) which has remained significantly low at the national level (1 percent). Even in the city levels, the demand in the category has fluctuated between a modest 1-5 percent. As a result a supply in the segment has led the pre existing demand in almost all the cities which is contrary to the industry buzz that the category is undersupplied and in the greater demand as reported by property portal.
The gap between the demand and supply was most glaring in the southern cities of Chennai and Hyderabad. There was an oversupply of 17-19 percent that was noted in these two cities. Bangalore also has recorded an oversupply of around 8 percent.
Source: The Economic Times
