Property in India is increasingly popular with British buyers. The country jumped into the top ten of Ã¢â¬Ëmost searched foreign destinationsÃ¢â¬â¢ last month and a major international property company has recently stated that they expect property prices in the country to rise in 2012.
Probable interest rate cuts in India over the next few months are also expected to help demand for property and to boost house prices. Keep reading to learn more.
Small Ã¢â¬Ëwindow of opportunityÃ¢â¬â¢ for buyers looking for well priced property in India
Jones Lang LaSalle (JLL) India, a global property research firm says that prices of residential units in India in the next six months should witness Ã¢â¬Ëmarginal appreciationÃ¢â¬â¢.
A report from the company says Ã¢â¬Ëover 60 per cent of residential launches in the Top 7 cities...are priced in the range of Rs 2,000-4,000 per sq ft, which meets the demand of middle-income buyers.Ã¢â¬â¢
The property market in India is also expected to be boosted in coming months by interest rate cuts. The Reserve Bank of India (RBI) has indicated that it expects to cut rates in the second half of 2012. This will make mortgage costs lower as well as helping developers save money on their borrowing costs.
This is because a number of builders have acquired huge land banks using borrowed money. The Economic Times reports that Ã¢â¬Ëas the builders pay huge interest rates, nearly 15-18 per cent on the borrowed fund, the servicing of debts has put huge strain on their finances.Ã¢â¬â¢ So, falling interest rates helps them manage their debt.
If you are thinking about buying property in India, JLL suggests that you move sooner rather than later. The company suggests that property buyers have a Ã¢â¬Ësmall window of opportunityÃ¢â¬â¢ over the next six months where prices are only seeing marginal appreciation. The research firm then says Ã¢â¬Ëa second wave of high appreciation is predicted.Ã¢â¬â¢