Indian property market set to grow this year

Indian property market set to grow this year

Is this a good time to buy property in India? This may be the question many ask these days.

The Indian economy may have slowed down and the Indian media may be harping on the corruption in that country. Yet, serious property watchers say investment in property promises good returns in India.

House prices in India have more than doubled in the past five years and, according to a recent Reuters poll, prices will keep rising this year even as the economy slows. The first such survey of 19 property market analysts, consultants, developers and data firms pointed to a median 7.5 per cent rise for house prices this year in India.

Knight Frank's proprietary partner and head of global residential agency Lord Andrew Hay told the Economic Times that the Indian property market is expected to remain stable in the near future even as prices in some of the international markets may fall 10-20 per cent in the next 18 months. He thinks that, despite economic and political changes in India, it is still a promising market.

Global CEO of Jones Lang LaSalle Colin Dyer recently wrote that Mumbai and Delhi have emerged as chart-busters. "In these cities, residential rates have already crossed and surpassed the peak levels. However, the inherent demand for residential properties in these cities is very high and supply is constrained... It is not likely that residential prices in Mumbai and Delhi will fall in the foreseeable future," he noted.

It is not just the big cities in India that have seen growth in property prices. Tier 2 and 3 cities too are growing fast.

Later this month, those living here will get an opportunity to check out offerings from across India when nearly 50 developers will showcase their projects at the HDFC India Homes Fair.

The HDFC India Homes Fair will be on at Singapore Expo Hall (4A) on Nov 24 and 25, from 10am to 8pm. Admission is free.

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