The real estate prices in India have soared to gigantic proportions in last few years. The prices have soared as high as 300% in last 3 years. Although, consumer earnings too have grown, it is no match for the steep rise in real estate prices.
I saw an interesting online survey conducted by MagicBricks recently on the aspirations of India online & the great Indian dream of owning a home. Results of this survey highlighted the huge gap between the expectations of a common average Indian and the reality of Real Estate Pricing. The survey also showed that nearly 60% of Internet surfers in India look for property-related information on websites.
Here are the findings of the survey:
The survey finds that more than 50% of Indians online are looking for a 2-bedroom house to call their home, and find the Rs 5-10 lakh bracket affordable. Of this, about 54 per cent users belonged to the megacities of Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Kolkata. The remaining 46 per cent came from smaller cities and towns like Nasik, Ludhiana, Batala, etc. This search for their dream home leaves Indian internet users with homes normally confined to the extreme suburbs or peripheries of large and small cities. (Note: survey results based on 1000 online survey respondents)
More than 50% Indians are looking for a 2 bedroom apartment for less than 10 Lakhs !!!
Wow !! Thats a revelation to me.
Is it even remotely possible to get a 2 bedroom flat for under 10 lakhs? I don’t think so.
I have earlier written about soaring real estate prices in India and how I have a made a fool of myself as far as predicting the growth in real estate prices. There is interesting discussion going around on these articles (read comments on this posts).
Given the stock market fall and general relative slow-down in Indian economy on back of recession fears in US, I think it is difficult for real estate prices to rise any further. It seems just impossible (Although, I have been proved wrong earlier), I think it is high time for housing prices to atleast stabilize, if not go down.