Property prices in India are expected to get another boom in coming days. According to a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI), the property prices would be gone up by 10-15 per cent in the coming six months. It will have its impact across tier I, II and III cities in the country.

The FICCI report says:

The correction in real estate prices is expected to ephemeral. It would be restricted only to some hot locations. In these locations, supply is more than demand.

On the other hand, India’s growing economy is producing new buyers consistently. This is why the price rise would resume over the next four to six months.

The report has given the example that there are such areas as Whitefield in Bangalore, and Mohali and Ludhiana in Punjab where people have seen a 15-20 per cent drop in property prices recently. On the other hand, the prices in Gurgaon have been stable for the past six months.

Santosh Kumar, a real estate consultant said:

Demand has been stagnant in Gurgaon for the past six months. Further, the higher home loan rates and stock market volatility have led to consumers delaying their property buying decisions

According to the survey, some 67 per cent of the respondents have said that the increasing FDI would cause the price increase in real estate property. Further, some 90 per cent of the respondents said that the IPOs would help to make the real estate sector more organized.

The large builders such as Parsvnath, Shobha Developers and Akruti Nirman have been issued their public offerings in 2006 and the other large builders such as Omaxe and DLF may issue its IPOs this year.

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