'Despite Telangana issue, HSI for Hyderabad up 22% in Dec qtr'
Feb 27, 2014
Source : Business Standard

 

HYDERABAD: Despite Telangana issue, the Housing Sentiment Index (HSI) for Hyderabad increased by 22 per cent to 101 points during the October-December quarter, breaking a largely negative streak to end close to neutral, according to an assessment by IIM Bangalore and Magicbricks.

The IIMB MB HSI is a sentiment index of the Indian real estate market that aims to capture buyer 'mood' and indicates residential real estate market performance.

"Hyderabad, which fell sharply last quarter (July- September), bounced back by 21 per cent amidst concerns over the Telangana issue. North and East Hyderabad posted positive sentiment this quarter with Hyderabad HSI coming in at 101. South Hyderabad also saw an increase of 24 per cent in HSI although still ending below 100 (HSI 91)," the report said.

The report further said that 91 per cent of residents in Mumbai intend to purchase flats (HSI 83), 30 per cent of residents in Chennai intend to purchase land (HSI 100) while 34 per cent of Hyderabad residents intend to purchase villas (HSI 96).

While property in the Rs 1-2 crore range has risen overall, Chennai witnessed a drop of 18 per cent (HSI 85). Sentiment for property in the below Rs 20 lakh range has either remained flat or witnessed a drop of up to 28 per cent in Hyderabad, except Pune where it rose by 29 per cent (HSI 133), it said.

A total of approximately 3,000 buyers are surveyed every quarter in an online survey across 10 cities Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore, Chennai, Ahmedabad and Kolkata (last two cities added in Q3 2013). The survey was conducted online in the months of July, October and December 2013.

Meanwhile, housing sentiment index in the third quarter of FY'14 has increased by over 25 per cent to 117 indicating that home buyers across the country expect property prices to go up post elections, the assessment said.

The index has bounced back to 117, the level at which it was in the first quarter from 93 in the previous quarter (Q2).

"The HSI clearly underwrites the forecast as home buyers across the nation expect real estate prices to rise over the next six months, reflecting a shift from the previous quarter when buyers expected a decrease in prices," the report said.

"Indian real estate is bound to remain an attractive sector in the medium term with faster growth expected in Tier- II cities. However, active interest will take another 6-9 months to translate into buying activity as consumers expect prices to go up only after six months, post the 2014 elections," Magicbricks Business Head Sudhir Pai said.

Noida topped the list of cities with an HSI of 129 witnessing a 33 per cent jump Q-on-Q.

"The proposed metro link, emphasis on affordable housing projects and construction of software technology parks is making Noida a fast growing and attractive city to live in," he said.

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