“Capital values fell in all cities, except Pune. Over 30 per cent of the tracked localities registered a fall of 1-9 per cent. However, rental values rose by 2-16 per cent across India with over 50 per cent localities across cities registering a rise.” the latest Magicbricks PropIndex reports.
City Index values, computed as a ratio of number of listings to prices, rose by 1-3 per cent, indicating that buyers who purchased for regular rental returns were winners. Ahmedabad and Ghaziabad registered a negligible drop of 1 per cent in the index values.
“The year 2014 started with anticipation among real estate stakeholders concerning the 16th general elections in the country. These Lok Sabha elections kept the Indian Real Estate Market in the wait-and-watch mode. This was reflected in the National Property Index, registering a 1 per cent change in the Jan-Mar 2014 quarter,” explains Sudhir Pai, Business Head, Magicbricks.com.
Mid-budget range of Rs 30-50 lakh remained the preferred category, especially in Bangalore and Pune.
Premium luxury properties remained oversupplied across cities despite a robust demand of over 20 per cent. Mumbai topped the chart with maximum demand for properties worth Rs 1 crore and Above, followed by Delhi and Gurgaon.
High-end properties worth Rs 2 crore and above remained more in demand in Delhi, Gurgaon and Mumbai. In all other cities luxury demand remained in the Rs1 crore and Above range.
Robust Smaller Markets
In the current PropIndex issue, Greater Noida has been incorporated as an independent city, recording growing demand for residential properties and offering several options in the affordable range.
“The formation of a new government is expected to infuse fresh life into the real estate market and improve home buyer sentiments. In the Jan-Mar 2014 quarter, property markets remained sluggish. However, robust demand from end-users arrested any significant change in property values,” adds Jayashree Kurup, Content & Research Head, Magicbricks.com.