We are finally seeing Indian property market rising in last few Months. 2009 was not a good year for Indian real estate after consistently rising for 5-6 years straight.
With Economy slowly coming out of recession, Property prices have also gradually started rising. Infact, it is surprising that property rates even during recession did not really fall too much. For e.g: in Pune, most of the builders did not bring down their rates, instead chose to gave more amenities and schemes – If at the rate fell, it did not go down below 20% of 2008 rates.
The current property rates are already high, but I hear most people saying that they are going to rise around 15% to 20% by this year end alone. I am not sure if the rates will appreciate so much, but there sure is a possibility.
Here are some of the Facts and Figures of Indian Property market:
- The property market contributes 5-6 percent to India’s gross domestic product, or about $50 billion annually to the $1 trillion economy, Asia’s third largest.
- Total foreign direct investment in housing and real estate in India, since investment norms were first eased in 2005, stands at $7.7 billion, including $2.2 billion in April-November 2009.
- The Bombay realty index fell close to 70% last year with some major realty stocks loosing as much as 90% of their value
- The major cities of Mumbai, New Delhi and Bangalore have the most expensive residential property in India, with rates comparable to New York, London and Tokyo, due to limited land and the government’s push to develop its services industry.
- Apartment prices have risen by around a third in some parts of India since hitting a low in the 2009 first quarter.
- The government, wary of an asset bubble forming, has warned that banks should be more cautious about risks in lending to property developers at low rates. However, little has been done yet to actually curb lending.
- India is in need of a clearer property policy to better develop the sector, analysts said.
- Since 2007, the legislature has been drafting a bill to regulate the real estate market, but has met with resistance by developers and industry lobbies.
So what is your take about Indian real estate market in 2010. You can also find some very interesting discussions on Indian Property Market over last 2 years