Crisil Research, says that there will be 5% correction in the realty prices in Ahmedabad this year.
This may not be good news for investors, but it’s music to the ears of home buyers in the city. A reliable market research agency, Crisil Research, says that there will be 5% correction in the realty prices in Ahmedabad this year. A recent report released by Crisil Research, titled ‘Real(i)ty Next: Beyond the Top 10 Cities of India’, estimates a correction of 5% in real estate market of Ahmedabad.
Crisil Research is an independent and integrated research house. The report, however, reveals that realty prices may rise by up to 10% in Vadodara while in Surat, a moderate rise is expected. The study finds that 10 smaller cities —Vadodara, Surat, Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow, Nagpur and Visakhapatnam — offer better price stability and demand growth. It foresees prices rising in seven of the smaller cities, including Vadodara and Surat.
In contrast, prices are likely to increase only in four of the 10 large cities surveyed. Though the agency names these large cities _ Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, National Capital Region, and Pune, it does not specify in which of the four large cities the prices will rise.
It, however, specifies that in Ahmedabad, the prices will fall. “In case of Ahmedabad, we are bearish,” Prasad Koparkar, head of Industry and Customised Research, Crisil Research, told DNA. It is pure economics, he said. “If prices are coming down, the supply is exceeding the demand. This year, we are expecting a correction of 5% in residential properties in Ahmedabad,” said Koparkar. According to Koparkar, local duties on transaction are one of the major hurdles for real estate in Ahmedabad.
“As the state government has recently hiked the jantri rates, the demand is affected. We have forecast only for 2011-2012, in which the residential real estate market of Ahmedabad is expected to see a fall in the prices,” said Koparkar.
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