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House prices in India will rise steadily in the coming years, according to a recent poll. Average house prices in the country are expected to rise, mainly due to demand from wealthy individuals, as the rise in the cost of living makes property ownership unaffordable for most people.
The Reuters poll shows that house prices in the country’s major cities are expected to rise 7 percent this year and 6.5 percent in 2025. The expectation for house prices is that house prices will rise by 7.5 percent in 2026, the study predicted.
Strikingly, rising inflation has escalated daily struggles for the middle class, as the richest 1 percent of the country’s population owns 40 percent of the country’s total wealth and is rapidly purchasing homes in major cities.
Quoting real estate analysts, the report said this could be enough to keep prices steady in the short term, but it could be difficult for the wealthy population to keep this level of demand alive in the long term.
Highlighting the demand issues in the real estate sector, Ajay Sharma, Managing Director, Valuation Services, Colliers International, noted, “The segment driving all these price increases is the luxury segment. And this will continue for a while, but the whole story that we are all seeing is very rosy. No one is talking about structural problems in demand. Once the top cream is no longer purchased, you will experience a huge drop in sales.”
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At the same time, rents are expected to rise even faster in the coming year at 7.5 percent, compared to a 10 percent increase in house prices, the poll said.
Specifically, the survey included average forecasts from the Nov. 12-19 survey of twelve real estate markets.
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