Housing Properties Prices: In a Reuters survey, property market experts have estimated the increase in housing property prices and rents.
Property prices in India will rise rapidly this year and will be higher than the inflation rate. This claim has been made in a poll by news agency Reuters. 14 property market experts have made this estimate in a survey conducted from 17 February to 4 March. In this poll, experts have said that the average house prices in India will increase by 6.5% this year and 6.0% next year, whereas last year they had increased by about 4%.
According to a survey conducted by Reuters among residential property experts, average house prices and rental costs in India will surpass consumer inflation this year. Experts involved in this survey were divided on whether the ability of first-time home buyers will decline or improve.
The price of expensive properties doubled
In fact, the country’s sluggish economic growth, stagnant wages and lack of better-paying jobs have wiped out the savings of millions of working class families. Apart from this, the imbalance created between strong demand and limited supply has increased the prices of houses to such an extent that millions of people have to live on rent. On the other hand, in the housing market driven by people of higher income group, the prices of houses have almost doubled in the last decade.
This view of property experts has changed little from the December survey, which was taken before the Reserve Bank of India started cutting interest rates.
Rents will also rise rapidly
The survey says that the cost of rent in cities is going to rise even faster, and it will increase by 7.0%-10.0% in the coming year. According to a separate Reuters survey, this increase will be much more than consumer inflation, which is expected to average 4.3% and 4.4% in the next two financial years.
