Property transactions have picked up in the last month or two, brokers have reported after nearly a year of stagnancy in the market.

A pan-India survey by Edelweiss Securities Limited has found that most brokers, 87 per cent of those covered, had seen a higher number of transactions in June than in the previous month. About 100 brokers in 20 micro markets across the cities of Mumbai, the National Capital Region, Bangalore and Chennai were surveyed.

The investment banking firm attributes the buoyancy in the market to the general election result, which has boosted consumer sentiments.

“A significant change in sentiments post elections, preceded by stimulus measures, has contributed to a strong recovery in volumes and prices. We believe prices have increased in the past 1-2 months, and expect another round of price hikes (especially for Mumbai, NCR), around the budget,” the Edelweiss report says.

The survey notes that while prices have fallen over the last one year, they have risen over the last month. These include the prices for projects launched at affordable prices during the slump. For instance, HDIL’s project at Kurla, which was launched at Rs 4,251 per sq ft (psf), is today priced at Rs 5,500 psf, while its Versova project, launched at Rs 7,651 psf, now costs Rs 10,000 psf. In Delhi, the price of DLF’s Capital Greens project has gone up from Rs 4,500 psf at launch to Rs 5,500 psf today.

Over half the brokers surveyed, 53 per cent, expect prices to continue upward over the next one year.

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