Recovery of India property market well underway
The recovery in the real estate market in India is well underway with prices increasing across the country.
Property prices in the national capital region (NCR) have increased by up to 54% during the first three month of this year due to higher demand, according to a study from realty portal 99acres.com.
Gurgaon’s Golf Course Road and Sohna Road have registered the highest rise at 54% and 43% respectively in the first quarter of 2010 compared with the same period in 2009.
‘We studied the property price trends of localities across Delhi and found that the real estate sector has moved out of the doldrums and is back on track with prices in key localities moving up,’ said 99acres.com business head Vineet Singh.
The NCR has always been an attractive destination for buyers as it provides high return on investments but other key locations such as Janakpuri and Vasant Kunj have seen 28% and 20% price appreciations respectively in the first quarter of 2010 compared to 2009. In Noida prices have gone up 19%.
In the southern part of the country prices are also increasing. The real estate sector in Hyderabad is booming. Demand for both residential and commercial property is at an all time high in Andhra Pradesh.
Infrastructure improvements such as the outer ring road and the Infosys campus are encouraging buyers, according to the Real Estate Company. NRIs, doctors and Information Technology professionals are buying, said Raj Kumar, marketing manager.
The real estate sector is anticipated to grow at the rate of 30% annually over the next decade and attract foreign investment worth $30 billion, with a number of IT parks and residential townships being constructed across India. The sector is one of the largest employers in the country, and has backward and forward linkages with about 250 industries, such as cement, brick, steel, building material and many others.