Real estate in India is in top 3 for rise in housing price
In a recent survey it is found that the cost of residential properties in India has increased by 12 percent in the financial year 2011-12.
In the growth pattern India stands at 3rd position in the report.
Typically, high interest rates dampen housing demand. However, the rise in prices in India was despite the prevailing high interest rates.
Most developers in India raised prices in 2011-12, owing to a rise in construction costs, despite a correction in demand.
A few developers also included the cost escalation clause in their buyer-builder agreement, and, therefore, could pass on the increased input costs to buyers. This is set to result in an additional rise in prices for the properties in India.
India ranks third in the global price index, while Brazil tops the list with 23.9 per cent growth. Estonia, which recorded 13.9 per cent growth in residential real estate prices, was second in the list.
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Rising property prices have reduced the demand
Source: Business Standard
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