Home prices begin to rise, signal change in real estate market mood
Residex data for Q3 shows prices rose in 16 out of 26 cities surveyed
Feb 12, 2014
Source : The Indian Express


DELHI:In recent months, real estate prices have shown an increase in 16 out of 26 cities covered by the country’s most authoritative residential housing price index, suggesting that prices may be finally bottoming out. 

Prices in Delhi and Bangalore rose during the quarter ended December 2013. In Mumbai, prices stopped falling for the first time since March 2013.

The Residex, an index released every quarter by the National Housing Bank (NHB) with technical support from RBI, has shown a sharp swing away from the trend earlier this year. In the first quarter of FY 14, residential real estate prices fell in 22 cities out of

26 in the list, a performance which improved to 10 cities in the following quarter, and finally to eight in Q3.

Prices were flat in two cities in the third quarter. In Q2, prices were flat in four cities; rose in 12.

In Bangalore and Pune, prices have risen for the first time since the last quarter of FY 13, the latest Residex data shows. The biggest rise was in Nagpur (8 per cent over the previous quarter), followed by Guwahati (7.4 per cent) and Pune (7.3 per cent).

Residential prices in Delhi rose 3.2 per cent over Q2, while those in Chennai and Bangalore rose 3.8 per cent and 3.7 per cent respectively. Patna has seen a significant increase of 6 per cent in prices.

Major cities where prices continue to fall are Lucknow (by 3.1 per cent from Q2), Jaipur (2.8 per cent), Chandigarh (2.1 per cent) and Kolkata (1.5 per cent).

The trend is significant because home prices are rising even though interest rates have not fallen. In the third quarter monetary policy released in January, Governor Raghuram Rajan raised benchmark interest rates by 25 basis points to 8 per cent.

R V Verma, the chairman of NHB, which also acts as a quasi-regulator for the sector, said there were clear signs of a change in the trend of persistent decline. “There is a strong demand from end-users. They are not willing to stay on the sidelines now,” he said.

Latest Realty News

Gurgaon is still an investor’s gold mine
Feb 12, 2014
DELHI: Gurgaon—one of the most promising realty markets in India—began its innings as the Millennium City with the creation of high-quality commercial spaces.
Realtors offering 'branded' homes to beat slowdown
Feb 12, 2014
DELHI: Domestic property developers tying up with international designers for residential projects seems to be a trend the country's luxury real estate sector is hooked on. On offer are products ranging from homes based on the Disney theme to Spanish-style living and interiors designed by the likes of Italy's Tonino Lamborghini, Casa and Armani.
Home sales bounce back in December quarter, clocks 22% rise in top 6 cities
Feb 12, 2014
DELHI: After several quarters of tepid growth, home sales bounced back in the three months to December with a 22 per cent rise in top six cities, according to property research firm Liases Foras.
National Buildings Construction Corporation's Q3 net profit up 57%
Feb 12, 2014
DELHI: National Buildings Construction Corporation Limited (NBCC), a Mini-ratna company, reported 57% increase in its net profit at Rs 56.6 crore during the third quarter compared to net profit of Rs 36.04 crore for the corresponding period in the previous year. The income from operations increased by 39.65% to Rs 1,000.23 crore during October-December quarter of the 2013-14 fiscal year.
US International Trade Commission to hear cases of bias against American companies in India
Feb 12, 2014
DELHI: The US International Trade Commission would begin public hearing on Wednesday as part of its probe into Indian policies that allegedly discriminate against US trade and investments. The quasi-judicial body set up by the US Congress is currently investigating whether and to what extent Indian polices discriminate against US players.
Should you prepay your home loan or invest the money?
Feb 12, 2014
DELHI: The home loan EMI is divided into interest and principal repayment, and the proportion of each changes over the years as the interest component falls and the principal rises. So, if Kamat prepays the loan, he will find a large amount of principal still outstanding, while the interest would already have been paid, assuming full term. When a loan is paid in part, the EMI for the remaining period is reworked. However, this is also based on the assumption of a full-term repayment, where the i
Things to know before you buy your home
Feb 12, 2014
DELHI: Getting into real estate investment without a proper understanding of what you aim to achieve is not advisable. There are many risks involved in real estate investment. However, with the right data and advice, you can definitely succeed in property investment. Here is a general blueprint.
Work speeds up on Dwarka Expressway in Delhi
Feb 12, 2014
DELHI: There is good news for investors and end users who bought property along the 18km-long, 150-metre-wide Dwarka Expressway in Gurgaon with the latest estimates saying that the project is likely to be completed by the end of this year.
The effect of policy on residential real estate
Feb 12, 2014
DELHI: Post the 1991 liberalisation policy, India began to welcome various multinational corporates that were seeking permission to commence operations locally. Being the financial and commercial capital of India, Mumbai was the first city to witness a significant influx of large multinational firms.
DLF may not gain much from stake sale in Aman Resorts
Feb 12, 2014
DELHI: The stake sale in Aman Resorts may not have a significant impact on the earnings of real estate developer DLF. Despite several asset sales in the past, DLF's stock has halved in the past one year due to the company's weak operational and financial performance.

Latest Realty News Of State

Realty Talk's