India’s home prices likely to increase – Cushman & Wakefield

NEW DELHI: Demand for residential property is expected to pick in the next six months, with prices likely to increase by up to 10%, Cushman & Wakefield (India) executive director, Ravi Ahuja said recently.

A report in The Economic Times on Feb 11 quoted Ahuja as saying that India has experienced an upswing in demand for both affordable and premium housing segments and in 2009, the prices have registered an increase of 15% to 20% on average, across the country with Mumbai registering the highest increase at 30% to 40%.

He was quoted telling the media at the Confederation of Indian Industry (CII)’s Realty 2010 - 6th International Conference on Real Estate in New Delhi.

According to Cushman & Wakefield data, cities such as Pune and Bangalore, along with the National Capital Region (NCR) saw moderate to sharp price increases in the residential market, he added.

However, the commercial market did not fare as well as only 50% of 51 million sq feet supply was absorbed. Approximately 80% to 85% of the total space comprised of IT and Information Technology Enabled Services (ITES) areas, where the demand is still very low due to an over-supply of IT and ITES space, said Ravi.

On the forthcoming Budget, Ravi said that should interest rates increase, the purchasing power of consumers will decline, affecting sales and a correction in prices would be likely.

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