Property market showing signs of recovery

The property prices are expected to remain stable over the next six months even as the real estate market has shown signs of improvement since March in terms of sales, an expert said.

"Since March, we have seen movement in the market. Before that, the confidence and sentiments were very low in the real estate market for almost seven months due to global economic slowdown," Global property consultant CB Richard Ellis Chairman and Managing Director (South Asia) Anshuman Magazine said on the sidelines of a CII function.

Magazine said the people have started slowly coming back to the real estate market, mainly attracted by the incentives given by the developers in housing, lower interest rates and price correction.

He, however, said that situation would remain challenging in the real estate market this year and the market is expected to improve in 2010.

"We have seen that across India, especially in low-to-mid income housing projects where prices were reduced, sales have started taking place," Magazine said.

Asked about rise in property prices, he said: "Overall, do not foresee any increase in prices in next six months."

The excess supply, which are in the pipeline, in housing and office segments would keep prices under check, he added.

In the office segment also lot of fence sitters have come back to the market and are buying space, he said.

ALSO READ

Budget backs infrastructure, farmers

Facilitate private sector funding in higher education

‘India relatively protected from recession’

Auto industry far away from full revival mode