Hyd & Bangalore are 3rd Most Preferred Real Estate DestinationsHyderabad and Bangalore are the third most preferred real estate investment destinations in 2010, nationally, according to an online survey by makaan.com. The real estate portal stated that it conducted a nationwide online survey christened "Realty Trends 2010" for metros and Tier II cities across the country, which saw participation from over 4,800 property seekers. According to the survey, 34 per cent of the property seekers want to own a house in Delhi followed by Mumbai with 28 per cent interested buyers. Bangalore and Hyderabad attracted 11 per cent property seekers nationally.
The survey also reveals that the realty sector in 2010 is going to be driven by end user. Due to the recession and fluctuating property prices, property seekers shied away from making a property purchase last year, but with improving economy and slightly stable property prices, seekers are ready to jump into the market this year. Most of the buyers, who are interested in buying a house, this year, want it for self-consumption. While 67 per cent of the national property seekers want to buy a house for self-consumption, only 23 per cent are looking for property options from a long-term investment perspective. Short-term investors have only 10 per cent survey takers.
When it comes to Hyderabad, the trend is in line with the national findings. Seventy one per cent of the property seekers from the city want to buy a house for self-consumption. On the other hand, 25 per cent buyers are looking it from long-term perspective. Only 4 per cent survey takers want to invest for short-term. The study was conducted on the portal between February 15 and March 5, 2010. Majority of the respondents who participated in the survey belong to the age group of 26- 35 years.Source: IRNews 3/4/10
12 % Rise Expected in Property Prices by End 2010
Prices of Properties may rise over 12 per cent from its present levels by the end of this year due to the rising costs of inputs like cement and steel, service tax levied on real estate industry and high cost of funds. While cement prices have risen by Rs 20 per bag, steel prices have also increased by around Rs 1,000 per tonne in recent times on the back of excise duty hike on the commodity. Further, budgetary provisions of levying a 10 per cent service tax on purchase of apartments or commercial property and with possibility of hardening of lending rates by banks will add to this price rise.
There is a strong possibility of price hike as factors like service tax, rise of input prices will be passed on to the end users, Raj Menda said on the sidelines of announcement of dates for CREDAI- Karnataka Realty Expo here. Inflationary pressure on the real etate industry will prompt such decision, he said. Confederation of Real Estate Developers Association of India (CREDAI) Karnataka, which is holding Realty Expo 2010 on 3rd and 4th of April, however, expects a good response from consumers due to reviving demand. There is a reasonable demand for properties as of now and it is growing at an arithmetic rate, Menda said. The demand for residential properties is good and on the back of revival in IT industry and salary hike for most employees, this is set to grow, he said. As 41 developers featuring 220 projects and over 15, 000 apartments and 3,000 villas will participate in the event, it will give consumers a wide variety of choices, he said.
The real estate sector has been badly hit by the recession due to the falling demand and repayment pressures. However, the sector is now looking up with some tangible signs of economic revival. There is roughly 6 per cent of the unsold properties lying with real estate developers as of now. In commercial property, there is an oversupply which is expected to be absorbed in the next two years, he said. In affordable housing segment, Menda said there were six developers showcasing affordable housing in the expo. Realty Expo, arranged by CREDAI, will also see participation of three new housing finance companies like ICICI Bank, Deutsche Bank and Reliance Home Finance this year. Banks are cautious about providing housing loan to consumers and asking for higher collaterals for lending to real estate developers, he said.