According to a Reuters poll of property analysts, property prices in India are expected to rise 7.5 percent on a pan-India basis this year, the fastest growth in five years. The average house price is expected to rise 6% next year and 6% in 2024. The poll of 13 real estate analysts was conducted from May 11 to May 27. In a March poll, analysts predicted a 5.0 percent increase this year.
According to a Reuters poll of property analysts, property prices in India are expected to rise 7.5 percent on a pan-India basis this year, the fastest growth in five years. The average house price is expected to rise 6% next year and 6% in 2024. The poll of 13 real estate analysts was conducted from May 11 to May 27. In a March poll, analysts predicted a 5.0 percent increase this year.
The BSE index of real estate companies has risen 21 percent in the last year, outperforming the broader Sensex’s 15 percent rise.
According to economists, increasing home demand and rising building material costs are two of the most important factors driving up housing prices. Higher mortgage rates, on the other hand, could put a strain on affordability, particularly for first-time buyers, according to analysts.
The Reserve Bank of India raised its benchmark repo rate – the rate at which it lends to banks – by 40 basis points to 4.40 percent earlier this month, marking the first rate hike in nearly four years. Economists expect the central bank to begin raising interest rates sooner rather than later in order to combat excessive inflation.
Prices in Mumbai and Delhi, as well as the surrounding National Capital Region, are predicted to grow between 4% and 5% this year and next, according to a Reuters poll. Over the next two years, prices in Bengaluru and Chennai are expected to grow by 5.5 percent to 6.5 percent.
Analysts warn that if interest rates rise sharply, many would-be first-time homeowners will prefer to rent instead. However, rents are expected to rise as well, according to the majority of respondents in a Reuters poll.
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