Realty prices increase in Q2 2014
Due to the fact that India is gaining a stable government looking to improve market sentiments by introducing reforms such as launching new projects and increasing sales volume, Indian property prices are expected to rise in the latter half of the 2014 quarter, according to the Knight-Frank FICCI Survey. The FICCI index is based on this survey that started three years ago, recording the highest point increase from 6 to 69 of various stakeholders including developers, private equity, banking, and nonbanking financial firms.
Knight Frank India Chairman & Managing Director Shishir Baijal, after stating that this was related to the supply-side index, is of the notion that political stability entices stakeholders to invest in the Indian real estate market, especially post the elections. Property Consultant of Knight Frank feels that because of this, investors expect faster decision-making processes and positive changes from the government that would lead to higher rates of return.
Knight Frank India Chief Economist and Director Research Samantak Das is certain that prices are going to rise in the second quarter of 2014 but did not specify to what extent appreciation rates will increase The survey suggests that the residential sector is going to be the most successful aspect of real estate as 62% of respondents feel that way, as opposed to the mere 14% in the previous survey. Realty Firm SARE homes Managing Director has informed that during the last 18 months, the housing market continued to grow at a slow pace. However, he feels that in the coming months, transaction volumes and prices are sure to boost up.
The survey concludes that market sentiments have improved for all, with the north being the most upbeat, where 75% of respondents anticipate that the funds would be more readily available six months down the line.
Source: Financial Chronicle
banking, Developers, FICCI Survey, increase in real estate trend, Knight Frank India, nonbanking financial firms, Private Equity, Realty prices, SARE
