INDORE: Prices of residential properties in Indore continue to be stagnant compared to price of residential properties in Bhopal. It is despite the fact that both in the state are among 20 cities of the country, which have witnessed the maximum price hike in residential properties during January-March 2013 over the previous quarter, as per a study by the NHB (National Housing Bank) Residex. While Indore has witnessed a price hike of merely 0.52%, Bhopal has witnessed the price hike at 6.49% during the period, the study adds. The reason is Indore properties are being ruled by investors. In case of Bhopal, experts feel it is end users who dominate the scene.
MD of an Indore-based realtor, IDB, Anil Nigam, said, "Wherever, there are end-user-based development of property, price hike is uniform, but when investors become the focus, it marks the beginning of the stagnation."
Vice president of the Bhopal chapter of builders' body CREDAI, Manoj Singh Meek, said, "Even though being cheapest among all state capitals of the country, Bhopal's ruling high on the front for simple reason that it boasts of having more end-users than that investors.
Managing director of Ruchi Realty, which has developed its properties in Indore and Bhopal, Manish Shahra, said, "It all depends on demand and supply position. The price hike is obvious, where both move pace-to-pace with each other. But it remains flat at places when the gap widens between the two. The price of property in Indore was on the rise until few years ago when people were booking their houses."
Commenting on it, managing director of an Indore-based realtor, EWDPl, Manish Kalani, said, "The price of property in Indore was on the rise until few years ago when people were booking their houses. But, now the investors want to encash their investment in property and hence I think that the market was rather correcting itself here."
House prices have increased marginally by an average 1.1% in 20 major cities, including Delhi and Mumbai, in January-March 2013 over the previous quarter due to slowdown in demand, the housing finance regulator, National Housing Bank, said.