Big rises are out, prices will stabilise

MUMBAI: Will the stock-market slump affect the real estate market? Not really, say experts, who, however, advise investors to tread carefully before pumping money into property.

Experts across Mumbai, Bangalore, Chennai, Hyderabad, and Delhi feel the downturn in the bourses may affect short-term sentiment in the realty market but will not lead to a fall in property prices, as the fundamentals of the real estate market are strong.

“Flat bookings in Mumbai have reduced, but prices will not fall,” said Raj Kumar, head of Trammel Crow Meghraj, a real-estate consultancy. “They will stabilise as the supply-demand mismatch reduces.”

In Bangalore, Chennai, and Hyderabad, real-estate consultancies are upbeat about the long term. Vikram Rajaram, executive director (south), Knight Frank India, said, “The influx of IT professionals will boost demand.”

Similarly, property sector in Gurgaon and NOIDA remain buoyant due to continued demand from IT/ITES players. “This year, we may not see the 20-30 per cent rise in prices as in the last couple of years, but prices will still move north,” said a report prepared by Cushman and Wakefield.