New Delhi: After rising rapidly over the past two years, housing prices are expected to rise modestly following a surge in demand due to the COVID pandemic, according to Anshul Jain, head of Cushman & Wakefield India.
In a video interview with Jain, Chief Executive India and Southeast ASI and APAC Tenant Representation, Cushman & Wakefield, said housing demand will remain strong given high economic growth and growing desire to buy homes, especially among consumers. . , young population.
“Housing demand in India was quite low from 2013-2014, prices were stable till 2019. There was a wave at that time, where people especially the youth did not want to own anything. We were talking about uberisation of the residential sector. Where people wanted to stay on rent and not make any commitments,” Jain said.However, he said the COVID pandemic has changed that mindset.
"People realize the stability of owning their own home," he said. "At the same time, people want bigger homes, and that combined with the lowest interest rate regime India has seen for some time has really boosted housing demand." "
Jain said housing sales and prices increased due to end-user demand.
Jain said, “Investors came into the market after seeing prices rising.“So, this combination became a perfect cocktail for the very strong demand due to COVID from a housing perspective.”
He said that going forward there will be a nominal increase in prices.
“...Obviously there has been very significant price growth over the last two years, but if you generalize it out, over about 10 years, from 2013-2014 to now, I think the price growth is still strong, but unusual. Not there.
“Having said that, what we have seen is very sharp price increases. I think over the next year or two, you'll probably see a little more stability in price increases.But I think the demand will continue as we move forward in the next few years,” Jain said.
Asked whether prices have not yet peaked and may rise further, Jai said prices have increased rapidly post Covid.
“So, when you go through such a tough cycle, you expect stability at a certain point in time. So, my expectation is that we are close to the high point of the market right now… We will see nominal growth in the market right now, I don't think the market will double again in the next two years, but there will be nominal growth...'' Jain said.
He said the nominal price rise will be driven by general market parameters such as inflation and general demand.India's housing market has revived rapidly post-Covid, according to various market reports from property consultants and real estate data firms.
Sales were at an all-time high in the last calendar year, while prices across the eight major cities rose an average of 10 per cent year-on-year.
However, prices have risen sharply by 40-70 per cent in many micro-markets over the past two calendar years.
Housing demand is shifting towards reputed builders who have a good track record of delivering projects.
In a video interview with Jain, Chief Executive India and Southeast ASI and APAC Tenant Representation, Cushman & Wakefield, said housing demand will remain strong given high economic growth and growing desire to buy homes, especially among consumers. . , young population.
“Housing demand in India was quite low from 2013-2014, prices were stable till 2019. There was a wave at that time, where people especially the youth did not want to own anything. We were talking about uberisation of the residential sector. Where people wanted to stay on rent and not make any commitments,” Jain said.However, he said the COVID pandemic has changed that mindset.
"People realize the stability of owning their own home," he said. "At the same time, people want bigger homes, and that combined with the lowest interest rate regime India has seen for some time has really boosted housing demand." "
Jain said housing sales and prices increased due to end-user demand.
Jain said, “Investors came into the market after seeing prices rising.“So, this combination became a perfect cocktail for the very strong demand due to COVID from a housing perspective.”
He said that going forward there will be a nominal increase in prices.
“...Obviously there has been very significant price growth over the last two years, but if you generalize it out, over about 10 years, from 2013-2014 to now, I think the price growth is still strong, but unusual. Not there.
“Having said that, what we have seen is very sharp price increases. I think over the next year or two, you'll probably see a little more stability in price increases.But I think the demand will continue as we move forward in the next few years,” Jain said.
Asked whether prices have not yet peaked and may rise further, Jai said prices have increased rapidly post Covid.
“So, when you go through such a tough cycle, you expect stability at a certain point in time. So, my expectation is that we are close to the high point of the market right now… We will see nominal growth in the market right now, I don't think the market will double again in the next two years, but there will be nominal growth...'' Jain said.
He said the nominal price rise will be driven by general market parameters such as inflation and general demand.India's housing market has revived rapidly post-Covid, according to various market reports from property consultants and real estate data firms.
Sales were at an all-time high in the last calendar year, while prices across the eight major cities rose an average of 10 per cent year-on-year.
However, prices have risen sharply by 40-70 per cent in many micro-markets over the past two calendar years.
Housing demand is shifting towards reputed builders who have a good track record of delivering projects.
