Property brokers expect prices to increase: Edelweiss Capital

June 29, 2009

Residential property builders have something to cheer if the result of a poll of property brokers conducted by Edelweiss Capital is any indication. The pan-India poll shows that property brokers expect prices of residential property, especially in Mumbai and the NCR region, to increase around the budget.

“Throughout India, property brokers have turned positive on the Indian residential realty market in the past three months,” the poll said.

There has already been an increase in the number of transactions in the past one month against nil in the preceding five months, it said. The poll was conducted among 100 odd property brokers in the first-half of June in the four cities of Mumbai, NCR, Bangalore and Chennai and 20 other micro-markets.

A significant change in the sentiment after the elections and preceded by strong stimulus measures have contributed to a strong recovery in volumes and prices, the release said. According to the poll, nearly 87 per cent of the brokers surveyed endorsed that transactions had indeed increased in the past one month. Around 53 per cent of the brokers surveyed expect the price trend to be positive over the next 12 months.

Among other key findings of the poll, 96 per cent brokers believe prices have fallen over the past one year, while 70 per cent of total respondents expect prices to stabilise over the next three months.

Edelweiss periodically tracks residential property market closely and the previous survey was conducted in the first week of April among potential buyers at a property exhibition in Mumbai.

“One of the key findings then was that while 52 per cent of the buyers thought prices were attractive, a whopping 79 per cent had said they would wait for further correction,” the release added.