The real estate prices are not going to increase now. However, there is scope for the prices to register an increase of 5% next year. During the current fiscal year the prices have already hiked between 8% and 10%, according to India Ratings and Research Organisation. In spite of rising cost of construction, increased rates of interest on mortgage, economic slowdown at home and abroad, there is an increase in the sale of properties.
The agency felt that the residential market has the potential to cross the hurdles of economic slowdown and inflation, which impacted the housing sector to an extent. The agency predicted 9% growth in house sales this year. The cost of construction has increased between 8% and 10%, affecting the construction budget of builders by 5% to 6%. In spite of it, the builders increasing the prices of properties this year was ruled out. However, it predicted an increase in the prices by 5% next year.
