Prime Indian property prices up 15%

Country:  India

11 September 2009

With residential demand on rise once more, particularly in key destinations such as New Delhi and Mumbai, India property prices in these regions have appreciated by up to 15% in recent months, as developers seek to cash in, by increasing prices across their projects.

Experts monitoring the Indian property market fear that the there recent hike in property prices could adversely affect demand.

Vikas Chimakurthy of Realty fund Kotak Investment Advisors said: “There was a substantial demand, especially in the mature markets, after prices dropped a few months ago.

“Today, potential customers are not willing to buy properties at these prices.”

Abhishek Lodha, director at Lodha Developers, a Mumbai-based company which has property projects in and around Delhi, says that recent residential price hikes in Delhi and Mumbai “is not much and is the result of the improved market conditions,” he said.

India’s largest property firm, DLF, also confirmed that property prices being increased. “Yes, there has been a price increase though it is still limited to some projects nearing completion,” said DLF executive director Rajeev Talwar.

See Also:   India, Marc Da-Silva, Overseas property investment news