For years, India has been one of
the worldââ¬â¢s top performing property markets. According to the Lloyds TSB International Global Housing
Market Review, India has seen a 284 per cent real rise in prices since 2001,
equivalent to an average annual rise of 14 per cent.
NDTV reports that ââ¬Ëprices in most
Indian urban centres have doubled since the property market boom began in
2006-07, driven by growing numbers of middle class Indians looking to invest in
real estate as well as speculators.ââ¬â¢
However, the growth in Indian
property prices is set to slow in 2012, thanks to a slowing domestic economy
and continuing global economic certainty.
Keep reading to learn more about the property market in India.
Demand for homes in India is falling but prices continue to rise
Samantak Das, director of
research and advisory at consultant Knight Frank, said: ââ¬ÅProspective home
buyers are being held back by a slowing domestic economy and great uncertainty
across the globe.
“Although in nominal terms house prices are expected to rise, once you
adjust for inflation, which is more than 7 per cent, prices in real terms are
stagnant. The economic situation
in India and abroad is not giving enough confidence to homebuyers, who feel it
is better to wait and watch.”
Buying a property in India has become more difficult for locals over recent
years thanks to rising prices and buyers required to pay around 25 per cent of
the total cost of the house as a down payment. In addition, interest rates on home loans, which range from
10 to 14 per cent, will probably not fall any time soon either.
However, while demand for homes
is falling, prices in India are still rising steadily. NDTV reports that ââ¬Ëin Delhi and its
surrounding National Capital Region (NCR) that includes Gurgaon and Noida,
average house prices are expected to rise by at least 7 per cent this yearââ¬â¢
despite sales being down by one fifth.
