Brokers' verdict

We reached out to 37 real estate agents across 30 cities during the month of February to measure the ground feel. Read broker's verdict in the story.

Print Edition: 03 Apr, 2008

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More than builders and bankers, it’s property brokers who understand the pulse of the local real estate market. That’s why Money Today reached out to 37 real estate agents across 30 cities during the month of February to measure the ground feel. Excerpted results of this e-mail survey are presented as answers to six questions on these pages, along with findings from 12 specific cities.

Click here to see slideshow: 'Broker's Verdict'

From Opinion To Facts

As Indians realise that a house is more than a living space—it’s the biggest asset for the majority of the middle class— and is actually an investment, they will need a better indicator of housing prices than the last sale price in their neighbourhood. The National Housing Bank has come out with a housing price index for five cities (and their suburbs) for the period between 2001 and 2005. Bengaluru and Delhi witnessed the biggest price rise.

NORTH

Delhi
Transactions down by: 25-40%
Broker opinion: Prices in some locations have gone down because of speculators who could not hold on to their investments for long and started selling at reduced margins
Likely price correction: Up to 10%

Chandigarh
Transactions down by: 10%
Broker opinion: In some suburbs, prices shot up after the launch of big projects. Prices have come down now because investors have pulled out and number of new projects has decreased
Likely price appreciation: 15-20%

Jaipur
Transactions down by: 15%
Broker opinion: Most of the projects launched on Jaipur-Ajmer Road were by Delhi developers, who have been affected by a slowdown in the Delhi market. Some shifted focus from residential to commercial
Likely price appreciation: 5-10%

SOUTH

Bengaluru
Transactions down by: 40%
Broker opinion: Most projects launched in 2004-5 are now ready for occupation. This has resulted in increased availability of mid-segment apartments
Likely price correction: 5-10%

Chennai
Transactions down by: 20%
broker opinion: high land prices and oversupply in some locations have brought down the demand and therefore prices in some regions
Likely price appreciation: 5-10%

Kochi
Transactions down by: 10%
Broker opinion: The residential property market is still strong with fresh investments from NRIs. The low growth expected this year is largely because of the high prices
Likely price appreciation: 10-20%

EAST

Kolkata
Transactions down by: 20%
Broker opinion: Kolkata has the lowest prices among all metros. It also has the largest catchment area because it is the only large city in the eastern region
Likely price appreciation: 15%

Bhubaneshwar
Transactions down by: 10%
Broker opinion: Government regulated market with almost 75% of the land holding with the housing board. Lack of space within the city will see demand shifting to suburbs
Likely price appreciation: 10-15%

Guwahati
Transactions down by: 10-15%
Broker opinion: Many new projects are coming up along the highway and the supply will start by the middle of this year. That will keep prices stable for some time
Likely price appreciation: 15-20%

WEST

Mumbai
Transactions down by: 40-50%
Broker opinion: Though most of the prime locations continue to command high prices, smaller developers are offering up to 20% discount on their projects
Likely price correction: Up to 5%

Pune
Transactions down by: 30%
Broker opinion: Oversupply in some locations and high prices in most new projects launched last year have brought some stability in the market
Likely price appreciation: 5-10%

Nagpur
Transactions down by: 10-15%
Broker opinion: High prices have brought down the number of transactions, though many new projects in the suburbs will increase supply in the market
Likely price appreciation: 10-15%